my favorite part of the ad auction 👇
@grsl_fr is leading at $0.11 CPC, that's the floor + 1¢, because nobody's bidding against them yet
add a competitor and it becomes their bid + 1¢. you bid your max, but only ever pay a cent over the runner-up
@grsl_fr is winning the ad auction at $0.11 CPC, which the author identifies as…
Brief
Ad auction mechanics: @dannypostma notes @grsl_fr currently leads at $0.11 CPC (floor + $0.01) because no one else is bidding. If another bidder appears, the winner pays the runner-up's bid plus $0.01, meaning advertisers submit max bids but generally pay only a penny above the second-highest bid.
Why it matters
@grsl_fr is winning the ad auction at $0.11 CPC, which the author identifies as the floor plus $0.01 because there are currently no competing bids.
Key details
- When a competitor enters, the winning price shifts to the runner-up's bid plus $0.01 — so advertisers can bid their maximum but typically pay only one cent more than the second-highest bid.