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When a visitor lands on a web page, a request is sent to an ad server by the browser. This ad request is put on an exchange where software can bid on the impressions.

The exchange collects all the bids and awards the ad spot to the winner or the highest bidder. This all happens at frictions of seconds while the web page is loading. Existing rule based algorithms can execute rapid bids but they cannot predict consumer behaviour and make decisions on what bids to place and for how much. With growing datasets, it is now important to transition to the next stage of technology which can learn patterns hidden in huge data sets and optimize bidding and delivery to achieve higher ROI.

AI Software can transform how impressions are bid on, how ads are created and served to customers. This will enable companies and business to gain significant competitive advantage and yield phenomenal results. AI software can group or cluster this data to create user profiles. It learn complex patterns hidden in the data that are impossible for humans to see or understand. With all the data and prediction capabilities, the AI software can enter into an RTB auction and will know how to maximize conversion rates by serving the right ads to the right customers.

AI can also maximize the effectiveness of the creative assets. Marketers can create of pool of ad creatives and the AI software can automatically serve the best ad to the user which it thinks will result in highest conversion. This process is called Dynamic Creative Optimization. The software continually tests the creatives in order to learn which creative is converting better with which user group.

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Use the ad rotation setting to specify how often you'd like the ads in your ad group to be served relative to one another. This setting optimizes your ads for each individual auction using signals like keyword, search term, device, location, and more.

Facebook Is Introducing Cost Cap Bidding To Help Advertisers Maximise Results

All video campaigns are automatically optimized for views. As data is accumulated, ad serving will become weighted more heavily in favor of the ads that appear statistically likely to perform better. These ads show more often, resulting in higher ad-served percentages. However, it's possible for ad serving to remain relatively even within this setting, if ads in an ad group have similar performance or if the ad group does not receive a substantial amount of impressions and clicks for some period of time.

The "Rotate ads indefinitely " setting delivers your ads more evenly into the ad auction, but does so for an indefinite amount of time and does not optimize. Because this option allows lower-performing ads to run as often as higher-performing ads for an indefinite period of time, this option is not recommended for most advertisers. With the "Rotate ads indefinitely" option, the percentage of impressions for ads served in the ad group will be more even than the other ad rotation options. However, because the quality of the ads differ, and quality is used to determine where an ad shows, or if it even shows at all, the percentage of impressions for each ad may not be perfectly even.

An ad with high quality may appear on the first page of search results, while an ad with low quality may show on the second page of search results, which reaches a smaller number of users. The term "bidding" is also used when placing a bet in card games. Bidding is used by various economic niches for determining the demand and hence the value of the article or property, in today's world of advanced technology, the Internet is a favored platform for providing bidding facilities; it is a natural way of determining the price of a commodity in a free market economy.


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Many similar terms that may or may not use the similar concept have been evolved in the recent past in connection to bidding, such as reverse auction, social bidding, or many other game-class ideas that promote themselves as bidding. Bidding is also sometimes used as ethical gambling in which the prize money is not determined solely by luck but also by the total demand that the prize has attracted towards itself.

Reporting | Real-Time Bidding | Google Developers

Unique bidding: In this case bidders place bids that are global unique bids which means that for the bid to be eligible, no other person can place the bid in this amount and the biddings are usually secret. Dynamic bidding: This is a type of bidding where one user can set his bid for the product. Whether the user is present or not for the bidding, the bidding will automatically increase up to his defined amount. After reaching his bid value, the bidding stops from his side.

Timed bidding auctions allow users to bid at any time during a defined time period, simply by entering a maximum bid. Timed auctions take place without an auctioneer calling the sale, so bidders don't have to wait for a lot to be called. This means that a bidder doesn't have to keep his eye on a live auction at a specific time.

By entering a maximum bid, a user is indicating the highest he is willing to pay for a lot. An automated bidding service will bid on his behalf to ensure that he meets the reserve price, or that he always stays in the lead, up to his maximum bid.

Understand How Facebook’s Ad Delivery System Works

If someone else has placed a bid that is higher than the maximum bid, the bidder will be notified, allowing he to change the maximum bid and stay in the auction. At the end of the auction, whoever's maximum bid is the most wins the lot. Live bidding is a traditional room-based auction. These can be broadcast via a website where viewers can hear live audio and see live video feeds.

The idea is that a bidder places their bid over the Internet in real-time.


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  • Effectively it is like being at a real auction, in the comfort of the home. Timed bidding, on the other hand, is a separate auction altogether, which allows bidders to participate without the need to see or hear the live event. It is another way of bidding, that is more convenient to the bidder.

    Bids and Budgeting on Linkedin

    Most large organizations have formal procurement organizations that acquire goods and services on their behalf. Procurement is a component of the broader concept of sourcing and acquisition. Procurement professionals increasingly realize that their make-buy supplier decisions fall along a continuum, from buying simple transactions to buying more complex and strategic goods and services e.

    It is important for procurement professionals to use the appropriate sourcing model.