Bidding

Definition of Bidding

The process of competing for ad placement by offering a price an advertiser is willing to pay for a click or impression.

Explanation of Bidding

Bidding in digital advertising involves placing a monetary offer to secure ad placements on websites, apps, or other digital platforms. Advertisers bid on keywords, audience segments, or specific placements in real-time auctions. The highest bidder typically wins the ad placement, although factors like ad quality and relevance can also influence the outcome. Bidding strategies can be manual or automated, with the latter using algorithms to adjust bids based on performance data. Effective bidding helps advertisers reach their target audience, optimize their ad spend, and achieve their campaign goals. It requires careful monitoring and adjustments to remain competitive and maximize return on investment (ROI).

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.