Paid advertising

Auction

An auction is the mechanism by which ad platforms decide which ads are shown, in what order and at what price. The winner is not determined by bid alone, but by a combination of bid, ad quality and relevance. The auction runs for every single impression in real time.

Two advertisers with the same bid can end up in different positions in the auction, because one has higher ad quality.

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Related terms

A/B Test Ad Extensions Ad Fatigue Ad Rank Attribution Attribution Window Bid Cap Bid strategy
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