In first-price auctions, where the clearing price is equal to the highest offer, which built-in efficiency does Display & Video 360 use to help advertisers prevent overpaying for impressions while maintaining a high win rate?

Display & Video 360 handles this with automated bid strategies that evaluate whether an impression is available at an optimal price compared to the market. In first-price auctions , paying the full submitted bid can reduce efficiency, so the platform uses pricing intelligence to improve win rate without bidding more than necessary. Google’s guidance describes this as raising bids when needed to compete more effectively while balancing pacing and performance, which is the built-in mechanism behind bid shading behavior in first-price environments. The goal is to pay closer to the amount required to win rather than systematically overbidding valuable impressions. Google Help+1