The highest bid in each auction is determined by multiple factors including price, as well as priorities and ranking controls (for example, deal priorities) set by the Media Owner. When evaluating bids based on price, we rank the highest bid based on net bid price, and not gross bid price:
- Net bid is the bid price after we take our Index fee.
- Gross bid is the bid price before we take our Index fee.
We evaluate net bid value over gross bid value to make sure that the Media Owner always receives the highest bid price after fee deductions are considered to maximize their revenue.
Example
A Media Owner receives two bids of $1.00 in an auction, one from a deal and from the open market. If the Media Owner has a lower fee structure on deals, this bid is ranked higher in the auction because its net value provides more revenue to the Media Owner.
