A media buyer is participating in an auction where the highest bidder wins but pays exactly the price they bid. What type of auction is this?
- Private auction
- First-price auction
- Second-price auction
- Hybrid auction
Explanation
In a first-price auction, the winning buyer pays the exact amount submitted in the winning bid. Google’s Display & Video 360 documentation states that non-guaranteed auctions can be first- or second-price, and that inventory goes to the highest bid above the minimum CPM. That payment rule is what distinguishes this model from a second-price auction, where the winner does not pay its full submitted bid. The defining mechanic here is that the clearing price equals the winner’s own bid. Google Help
Why the other options are incorrect
Hybrid auction is not the standard Display & Video 360 auction term used for the model where the winner pays its own submitted bid. Google Help
Private auction describes a restricted auction type based on invited buyers, not the pricing rule that determines whether payment is first-price or second-price. Google Help
Second-price auction uses a different payment method, because the winner does not pay the exact amount of its own bid. Google Help
Source for verification
About non-guaranteed auctions — Display & Video 360 Help Google Help