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OpenX first-price auctions

Last updated on August 7, 2017

OpenX first-price bidding is in Beta release only. OpenX will start supporting first-price auctions in early September 2017. To enable this feature or for more information, please contact your dedicated OpenX Business Development Manager.


OpenX is releasing first-price auctions to give DSPs more control over how their bids are passed into header biddingA monetization tool that exposes each impression to programmatic demand before calling the ad server. This lets publishers realize the true value of their direct and indirect inventory in real time. integrations with publishers, and to increase the competitiveness of DSPDemand-side platform, a platform or provider that allows advertisers to manage multiple ad exchange and data exchange accounts through one interface, often in real time. bids when they compete in subsequent auctions. We recommend DSPs adopt the signals passed in the bid requestWhen OpenX Ad Exchange receives an ad request, it sends a communication containing details about the impression to selected real-time bidders to solicit bids for it., as outlined below, to enable different bidding strategies for first-price and second-price auctions with OpenX.


This topic will explain:

Understanding how OpenX determines when to run first-price auctions

OpenX determines which set of traffic should conduct first-price auctions based on the characteristics of the final auction taking place for any given request:

Identifying and bidding on first-price auctions

BidRequest.at

OpenX allows DSPs to submit first-price bids on specified inventoryAd space available on a website or app. The basic unit of inventory for OpenX is an ad unit. via standard OpenRTB procedure. We use the at field of the BidRequest object to indicate what type of auction will be run for any given request.

Field name Data type Description

Sent?

at

integer

Auction type of the request.

  • 1 = First-price auction.
  • 2 = Second-price auction.

Always

BidRequest.imp.pmp.deal.at

In the case of PMPPrivate marketplace, the packaging, offering, and selling of high quality inventory to a limited set of buyers. traffic, we use the at field of the Deal object to indicate what type of auction will be run for any given PMP request.

Field name Data type Description

Sent?

at

integer

Auction type of the PMP request. This overrides the overall auction type of the request.

  • 1 = First-price auction.

  • 2 = Second-price auction.
  • 3 = Fixed price auction.

Always

 

Note: The Deal.at field value takes precedence over the BidRequest.at field value.

BidRequest.source.fd

OpenX leverages the fd field of the Source object to indicate whether OpenX or an upstream entity runs the final auction and serves an ad.

Field name Data type Description

Sent?

fd

integer

Entity responsible for the final impressionA single display of an ad on a web page, mobile app, or other delivery medium. For deals, impression is a metric to relay the total number of ads that have served. See also billable impression, forecasted impressions. sale decision.

0 = OpenX Ad Exchange.

1 = Upstream source. For example: header bidding.

Always

Ramping up first-price bidding with OpenX

OpenX is taking a transparent and phased approach to ramping up first-price auctions with its demand partners during the second half of 2017. For more information about the ramp-up process, please speak with your Business Development Manager.


During the ramp-up process, you may experience cases where you receive different requests from a single publisherAn account type that represents a business with ad space to sell. as either first-price or second-price auctions. This is expected and normal behavior.

In these scenarios:

  1. First-price bids and second-price bids from different DSPs will compete in separate auctions for the same request.
  2. The clearing price will be determined for each auction.
  3. The winning bid will be determined by comparing the two clearing price results.

If the winning bid is a first-price bid, the first-price bid serves as the clearing price. If the winning bid is a second-price bid, the clearing price will be determined by standard second-price auction logic.

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