Chip Schenck, vp of programmatic sales and strategy, Meredith
We just started testing first-price with Index Exchange today. With second-price auctions, the buyer mentality is to win an auction because advertisers know that even if they bid the highest price, they will end up paying less. But with first-price auctions, media buyers pay based on what they believe what an impression is worth — they have the incentive to lower their bids because they are supposed to pay the amount they bid, and nobody wants to overpay for an impression. If first-price and second-price take place concurrently in an auction, the first-price auction will floor the second-price auction.