Definition

In digital advertising, the competitive auction process where advertisers throw money at platforms like Google and Facebook for the privilege of showing their ads to eyeballs. It's capitalism at its most caffeinated, with algorithms determining in milliseconds who pays what for each ad impression. The highest bidder usually wins, unless the platform's complex quality score decides otherwise—because even ad auctions need participation trophies.

Example Usage

Our bidding strategy adjusted automatically to stay competitive during peak shopping hours without blowing the entire monthly budget.

Source: Digital advertising terminology

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