Bid Strategy

Definition of Bid Strategy

A plan that defines how much an advertiser is willing to pay for ad placements.

Explanation of Bid Strategy

A bid strategy is a plan for setting and adjusting bids in digital advertising campaigns to achieve specific objectives. Different bid strategies can be used depending on the campaign goals, such as maximizing clicks, conversions, or return on ad spend (ROAS). Common bid strategies include manual bidding, automated bidding, and enhanced cost-per-click (ECPC). Manual bidding allows advertisers to set individual bid amounts for each keyword or placement, while automated bidding uses algorithms to adjust bids based on performance data. Choosing the right bid strategy is crucial for optimizing ad spend, improving campaign performance, and achieving desired outcomes.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.