Ad bidding refers to the process of participating in auctions to determine the cost an advertiser is willing to pay for each ad impression or click. Advertisers bid against each other, and the highest bidder typically wins the opportunity to display their ad to the target audience.
Significance and Usage – Ad bidding
Ad bidding is a fundamental aspect of online advertising, especially in programmatic advertising and pay-per-click (PPC) campaigns. By bidding competitively, advertisers can secure ad placements, maximize their reach, and effectively manage their advertising budget based on the value they attribute to each impression or click.
Example for Ad bidding
For instance, in a real-time bidding (RTB) scenario, multiple advertisers may compete to display their ad on a website. Each advertiser sets a bid amount that they are willing to pay for the impression. The highest bidder wins the auction, and their ad is displayed to the user visiting the website.