The highest bid in each auction is determined by multiple factors including price, as well as priorities and ranking controls (for example, deal A private auction that allows publishers to offer specific inventory directly to selected buyers identified by a deal ID. Terms are negotiated and are agreed upon before the auction occurs. priorities) set by the publisher The owner of a website or app where advertisements are served.. When evaluating bids based on price, we rank the highest bid based on net bid price, and not gross bid price:
- Net bid The bid price after Index fee or, if applicable, Marketplace fees. 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 publisher always receives the highest bid price after fee deductions are considered to maximize their revenue.
Example
A publisher receives two bids of $1.00 in an auction, one from a deal and from the open market. If the publisher has a lower fee structure on deals, this bid is ranked higher in the auction because its net value provides more revenue to the publisher.
