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).