What type of auction can the Microsoft Retail Media platform ( powered by PromotelQ) platform offer?

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Second price auction


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What type of auction can the Microsoft Retail Media platform ( powered by PromotelQ) platform offer?


Explanation: The selected answer option is **correct** because the Microsoft Retail Media platform (powered by PromotelQ) operates using a **second price auction** model. In a second price auction, the highest bidder wins the auction, but instead of paying the amount they bid, they pay the second-highest bid. This pricing model is designed to encourage more competitive bidding, as advertisers can bid the maximum amount they are willing to pay without the risk of overpaying. This system helps maintain fair and transparent bidding for ad placements, ensuring that advertisers are not penalized for bidding too high while still securing premium inventory. The second price auction is commonly used in programmatic advertising platforms because it provides an efficient way to allocate ad spaces based on competitive bids while keeping costs reasonable.

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