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0 pointsVHRanger2y ago0 comments

I also work in ad tech (lead the algo team in job ads).

Second price auctions online are great, but they're not strategyproof. You still need a bidding strategy.

For thin/small/sparse markets they simply don't work. You need a first price auction.

Google definitely game their own 2nd price auction, but this is just one reason amon many they're not strategyproof.

0 comments

whimsicalism2y ago

Do advertisers even control their bid in the auction? In my experience, not fully.

VHRangerOP2y ago

My job is to write algos that optimize the bid on behalf of clients.

Most pay per click ad platforms have an API that let you set the bid.

whimsicalism2y ago

I also work in this field,

> Most pay per click ad platforms have an API that let you set the bid.

even when you are let to set the bid, usually the auction is not conducted just based on your bid but also adjustments from the probability that you will actually pay out

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0 pointsVHRanger2y ago0 comments

I also work in ad tech (lead the algo team in job ads).

Second price auctions online are great, but they're not strategyproof. You still need a bidding strategy.

For thin/small/sparse markets they simply don't work. You need a first price auction.

Google definitely game their own 2nd price auction, but this is just one reason amon many they're not strategyproof.

0 comments

whimsicalism2y ago

Do advertisers even control their bid in the auction? In my experience, not fully.

VHRangerOP2y ago

My job is to write algos that optimize the bid on behalf of clients.

Most pay per click ad platforms have an API that let you set the bid.

whimsicalism2y ago

I also work in this field,

> Most pay per click ad platforms have an API that let you set the bid.

even when you are let to set the bid, usually the auction is not conducted just based on your bid but also adjustments from the probability that you will actually pay out

2 more replies

j / k navigate · click thread line to collapse