DIGITAL ADVERTISING

Google announces it is moving AdSense to a first-price auction

By our News Team | 2021

The change will make it easier for buyers to purchase advertising space being sold on AdSense, company explains in a blog post.

Google has announced that it will be moving the AdSense auction from second-price to first-price in the coming months. The company says this change will make it easier for buyers to purchase ad space being sold on AdSense.

Making the announcement in a blog post by Product Manager, Matt Wong, Google said this was part of a continued effort to simplify AdSense.

There is no action required from businesses selling advertising space via AdSense and they will likely not see a change in their earnings.

Why Google built AdSense

“Creating great content takes time, but earning money from it shouldn’t,” Wong writes in his post.

“That’s why we built AdSense, to help you make money from your site with an easy-to-use advertising platform. AdSense simplifies advertising for you by automatically tailoring ads to your site’s layout, optimising for mobile web and connecting you to millions of advertisers.”

Outreach Pete via Wikipedia

Wong added: “We’re making this announcement now to help our advertiser partners prepare before we change how the AdSense auction works.”

What’s going to be happening

In the early days of online display advertising, ad space was sold to advertisers in a second-price auction, where the final price paid by the winner was determined by the amount of the second-highest bid.

Over time, many ad selling platforms in the display advertising ecosystem, including Google Ad Manager and Google AdMob, switched their auction to first-price. In a first-price auction, the final price reflects the winning bid. In the coming months, AdSense will move to a first-price auction. This will help advertisers by simplifying how they buy online ads and make it easier for them to buy ad space sold on AdSense, Google says.

Benefits to publishers and advertisers

By streamlining the auction model across AdSense, Ad Manager and AdMob, Google explains that it is aligning its process with other ad-selling platforms in the display advertising ecosystem.

“We believe this will help grow advertiser spending confidence in digital advertising and an increase in spending confidence over time will benefit publishers (that’s you),” Wong wrote.

Google expects the transition to a first-price auction to be completed later this year.

We know AI influencers aren’t real – so why do we trust them?

Researchers describe AI influencers as having a ‘dual identity’. Consumers evaluate both ‘person’ and ‘technology’ identities at once.

Hotel receptionist assisting a guest at the check in counter with a gray suitcase nearby behind the desk

Why trust has become a critical asset for hotel industry marketers

Reputation and trust, once modest influences on hotel choice, have become some of the strongest predictors of patronage, study finds.

Three people in formal attire pose for a photo at an awards event a woman in a pink dress holds a trophy while two men in suits stand beside her against a gold confetti backdrop

FNB bank’s eBucks programme dominates the 2026 SA loyalty awards

South African brands are increasingly setting the global benchmark for customer loyalty strategies, organisers say.

Portrait of a man with short black hair and a beard wearing a black button down shirt against a light gray background

Zambia’s strongest creative ideas are emerging from local truths

Global influences among younger consumers are still present, but they are being filtered through a distinctly Zambian lens.

Yellow humanoid robot at a bakery counter inspecting a display of donuts on display in front of glass cases

Consumers have doubts about products when they’re designed by AI

Researchers find that lack of perceived ‘genuine care’ is the mechanism connecting AI involvement to lower trust ratings.

Top african marketing voices confirmed for amc

Top African marketing voices confirmed for AMC 2026

Explore the 2026 AMC Conference speaker line-up. Top African marketing voices gather in Zambia to tackle AI, AfCFTA, and brand power. Register today.

Person holding two smartphones with app icons visible on their screens a large tv screen in the background shows colorful app icons

Broadcast Research Council confirms launch of total video measurement

New industry currency will bring South African television and online video audiences together in a single measurement system.

Dj performing on a brightly lit stage as colorful lights shine over a dancing crowd

Sense of belonging and atmosphere are key to attracting event-goers

Making people feel that an event space reflects their values leads to long-term loyalty and spending. FOMO also plays its part.

Smiling woman with curly hair in a yellow and white striped shirt holds a red can and points to the text 'what makes some ai ads creepy '

Researchers examine why some AI ads fail while others succeed

Norms may change, but right now it’s better to err on the side of caution when using AI in advertisements, study finds.

Woman in a denim jacket looks at her phone while standing with a shopping cart in a grocery store aisle holding a boxed item

Study examines drivers of FMCG purchases in three African markets

GeoPoll insights report from Kenya, Nigeria and South Africa finds that quality remains the key purchase driver in FMCG.

E-commerce retailer aims to speak to the hearts of South Africans

As the country celebrates Heritage Month, Takealot embarks on a campaign to speak to consumers in all 12 official languages.