You have the winning bid at a second-price auction for inventory in Display & Video 360, at $12. The second-highest bidder bids $8. How much will you pay for these impressions?
- $12.00
- $8.01
- $8.00
- $12.01
In a second-price auction model within Display & Video 360, the winning bidder pays the price of the second-highest bid plus $0.01.
Therefore, with the winning bid at $12 and the second-highest bid at $8, the winning bidder will pay $8.01 for these impressions.
This pricing mechanism encourages advertisers to bid their true value for impressions, as the winning bidder pays a price that
reflects the perceived value by the second-highest bidder, promoting a fair and competitive auction environment.