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Feb 3, 2023 · Fundamentals

How Do Ad Exchanges Charge? First‑Price, Second‑Price, and VCG Auctions Explained

This article explains how ad exchanges (ADX) charge advertisers by comparing the generalized first‑price, generalized second‑price, and Vickrey‑Clarke‑Groves (VCG) auction mechanisms, illustrating their pricing rules, advantages, drawbacks, and real‑world adoption in programmatic advertising.