Which of the below statements is true for private auction deals? Select All Correct Responses
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Correct answer: Private auction deals allow you to pay a varied CPM across multiple sites., Private auction deals give an exclusive group of advertisers priority to bid on the open inventory., Private auction deals work on a 2nd price auction where the highest bidder wins the impression, but pays the 2nd highest bid..
Why this is the answer
Private auctions (PAs) offer publishers more control over their inventory and pricing, while giving advertisers exclusive access to premium impressions. The CPM can vary across different sites within a private auction, as publishers set individual floor prices. PAs provide an exclusive group of advertisers priority to bid on inventory before it becomes available on the open exchange. Like open auctions, private auctions typically operate on a second-price auction model, meaning the highest bidder wins the impression but pays only one cent more than the second-highest bid. This differs from a first-price auction, where the highest bidder pays their exact bid.
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