bidding algorithms

Bidding algorithms are computer programs used in digital advertising to automatically determine how much to pay for an ad placement. They analyze factors like the target audience, auction data, and campaign goals, then decide the optimal bid in real-time to maximize value—such as clicks, conversions, or brand awareness—while staying within budget. Essentially, they help advertisers efficiently compete for ad space in online auctions, ensuring they get the best return on investment by adjusting bids dynamically based on data insights.