In programmatic advertising, advertisers (or buyers) purchase inventories from publishers (or sellers) through bidding. The most commonly practiced bidding in this scenario is the second-price auction.
A second-price auction is an auction process in which the highest bid wins, but the winner pays only one cent more than the second-highest bid.
This model encourages advertisers to bid their true value, knowing that they won't have to pay the entire amount they offered.
How it works