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Ad auction
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a real-time bidding process where advertisers compete to display their ads on a website or app by bidding on ad inventory, and the highest bidder wins
What is an "ad auction"?
An ad auction is a system used by online platforms to determine which advertisements are displayed to users based on bids placed by advertisers. In this process, advertisers bid on specific keywords or placements, and the platform selects which ads to show based on factors such as bid amount, relevance, and quality. The highest bidder does not always win; instead, ad placement is determined by a combination of bid price and the ad's overall quality score. Ad auctions are commonly used in search engine advertising and social media platforms, enabling advertisers to compete for visibility in a fair and dynamic environment.
Example
The company won the ad auction, and their ad is now displayed at the top of the search results.
The ad auction is competitive, with many businesses bidding for the same keyword.
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