For those thousands of supporters who have bought my book a minor correction:
A big thanks to Benjamin Weber who accurately spotted an error in my book “Ad Serving Technology” 1st Edition.
On page 545 of the copy I have there is a section on “The Second Highest Bid Auction” which states “When the auction ends, the second-highest bidder will be awarded the space and be asked to pay around a cent more than the bidding price agreed. This is used so that a single Trading Desk cannot control the auction by buying all the inventory that matches their strategy.”
In RTB the second price auctions abide by this definition: The highest bidder is awarded the ad space, but only pays the price of the second-highest bidder. The reason for the second price auction is to ensure the highest bidder never over-pays for the inventory.
(definition here: http://en.wikipedia.org/wiki/Generalized_second-price_auction )
This is also what the openRTB spec refers to as a second price auction:
To date, apart from a few grammatical errors for which i humbly apologize, there are no other errors in the accuracy of the printed information as far as the technology works or how the industry operates.
Please find a link to all the diagrams in digital form, here.