If you win a second-price auction in Display & Video 360 with a bid of $12, and the second-highest bid is $8, you will pay $8.01 for these impressions.
- $12.00
- $8.00
- $12.01
- $8.01
The correct answer is: $8.01
Explanation: In a second-price auction model, the winner pays just one cent more than the second-highest bid. Therefore, despite your winning bid of $12, the amount you actually pay is based on the second-highest bid of $8, plus one cent, making it $8.01. This pricing mechanism ensures you only pay slightly more than what the next willing bidder would have paid, encouraging participants to bid their true value for the impression.
Chapter 21: Understand Auction Dynamics