Does DV360 Public Inventory use first price or 2nd price auction?

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Dsps have bid shading (or something like that) so even if it’s first price, you don’t end up paying and absurd amount

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Nice. I was wondering about that too! Thanks 👍

this can be SSP dependent. Out of the hundreds of SSPs that are available in DV360, most have switched to a first price auction. I think it's pretty standard now. You can pull for this in an Inventory Availability Report in console.
Google Ad Manager (formerly AdX) is on a first price auction model afaik

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Thanks!

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Could someone explain this to me? Whats first price / 2nd price auction?

A 1st price auction is one where you pay what you bid, regardless of other bids in the auction. If I bid $6, and the only other bid is $1, I win and pay $6.

A 2nd price auction is one where the winning bid pays $.01 over the second-highest bid. So if we use the example above, I would win and pay $1.01.

There is debate abound about which is “better”, but generally a 2nd price auction incentivizes bidders to bid their true value every time since there is no threat of overpaying if there is low demand/bid density (since you only have to pay $.01 over the next highest bid). 1st price auctions incentivize bidders to get as close to what they think the clearing price will be as possible, to avoid over-bidding (the “shading” referenced in a previous comment).

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Probably have to use auto bid with an average cpm limit cap as fixed bid is pretty much impossible with 1st price auction.

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