An auction in which the winner pays one increment above the second-highest bid rather than its own bid. Second-price auctions dominated early programmatic and remain the model, with modifications, in Google Ads search auctions, where the price paid is the minimum needed to beat the next competitor's Ad Rank.
Related terms
Cite this entry:
Agency Echelon. "Second-Price Auction." Agency Echelon Reference, reviewed September 2026. https://agencyechelon.com/reference/glossary/second-price-auction/