Reference / Glossary / Buying and pricing
First-Price Auction
An auction in which the winning bidder pays exactly what it bid. Since 2019 nearly all programmatic exchanges have run first-price auctions, replacing the second-price model. The change moved the burden of price discovery onto buyers, which is why DSPs now apply Bid Shading to avoid overpaying.
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Cite this entry:
Agency Echelon. "First-Price Auction." Agency Echelon Reference, reviewed September 2026. https://agencyechelon.com/reference/glossary/first-price-auction/