Starting January 22, Rubicon Project will select the winner of all header bidding transactions on a first-price basis. Rubicon Project is offering two options for the bidders on first price auctions:
- Submit their first-price bid to the final auction in the seller’s header;
- Use a free Rubicon Project feature called Estimated Market Rate (EMR).
Estimated Market Rate (EMR) is a feature that looks for opportunities to reduce their bid while maintaining high win rates.
Tom Kershaw, CTO at Rubicon Project, says that the move to first price action is transparent for buyers as they pay what they bid (or less if they choose EMR), and improves buyers’ access to supply by making it easier to compete with first-price bids from other demand sources in the final auction.
Rubicon Exchange will use standard RTB flags to share the auction dynamic and auction operation (i.e. header bidding or waterfall) with buyers in the bid stream. Rubicon also plans to continue to run a modified second-price auction for all waterfall transactions (i.e. tag-based implementations, including Private Marketplaces).