Advertising Auction

An advertising auction is a method used by platforms like Google and Facebook to decide which ads to display to users. Advertisers bid money to have their ads shown, and the platform considers factors like bid amount, ad relevance, and expected user engagement. The ads with the highest combined scores get priority placement. This process helps ensure that users see relevant advertisements while allowing advertisers to compete fairly. Essentially, it’s a way to balance user experience and business goals in the online advertising space.