Unraveling The Mystery Of PubMatic's $5 Million Loss From A "First-Price Auction Switch" | AdExchanger
Briefly

In August's Q2 earnings report, PubMatic revised its revenue projection down by $5 million, citing significant revenue shortfalls stemming from an unnamed DSP partner's shift to first-price auctions earlier this year.
A spokesperson for PubMatic confirmed that the unnamed DSP in question was Google DV360, which updated its bidding logic that inadvertently impacted PubMatic's revenue by $2 million in Q2 alone.
Despite Google’s assertion that DV360 accepts bids from both first-price and second-price auctions, PubMatic framed its earnings report issue as a revenue loss due to the switch to first-price auctions.
According to PubMatic, despite having transitioned to first-price auctions back in 2018, the change in DV360's bidding logic raised questions about the expected revenue from that partnership.
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