Correction, Google isn't charging the advertiser more than the advertiser bid.
When Google passes to the ad exchange an inflated bid, the auction result bid may end up greater than the original bid; the difference is covered by Google. It still makes sense for Google, because (a) the relative changes are on par or less than the usual Google comission (b) Google sure does the math before deciding on what the changes actually are. You can do that math too, and then see in what circumstances it works without the elements of fraud alleged by the complaint.
Texas is certainly misleading by examining that one part of Bernake harmed publishers and glossing over the fact that the other part of Bernanke ("inflating" bids) increases publisher's revenues. Hint: Google earns a commission fee from the transactions, and Google is greedy.
This is an anti-trust lawsuit, because the owner of an ad exchange can, in theory, decide to contractually require from participating ad networks that the pair of bids they submit are exactly the same as their client advertisers requested (whatever that means for automated bidding...). Or, keep it freestyle, allow for networks to submit optimized bid values.
The purpose of a second price auction is to prevent manual bid wars and that is still upheld
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Re: Re:
Correction, Google isn't charging the advertiser more than the advertiser bid.
When Google passes to the ad exchange an inflated bid, the auction result bid may end up greater than the original bid; the difference is covered by Google. It still makes sense for Google, because (a) the relative changes are on par or less than the usual Google comission (b) Google sure does the math before deciding on what the changes actually are. You can do that math too, and then see in what circumstances it works without the elements of fraud alleged by the complaint.
/div>Re:
Texas is certainly misleading by examining that one part of Bernake harmed publishers and glossing over the fact that the other part of Bernanke ("inflating" bids) increases publisher's revenues. Hint: Google earns a commission fee from the transactions, and Google is greedy.
This is an anti-trust lawsuit, because the owner of an ad exchange can, in theory, decide to contractually require from participating ad networks that the pair of bids they submit are exactly the same as their client advertisers requested (whatever that means for automated bidding...). Or, keep it freestyle, allow for networks to submit optimized bid values.
The purpose of a second price auction is to prevent manual bid wars and that is still upheld
/div>Techdirt has not posted any stories submitted by gedaj.
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