Bid Definition

bid definition

What is a Bid?

Bid definition: bid refers to the highest amount of money a brand is willing to pay for a cost-per-click (CPC) ad.

Bids are dictated by a brand’s advertising budget; brands who are willing to bid high enough will win an ad placement over their competition.

For example…

Nike and Adidas both want to target swimmers in California.

Both brands submit their bid:

  • Nike bids $0.50
  • Adidas bids $0.65

Adidas bid more money and therefore wins the primary placement. This means more people will see their ad over the course of the campaign.


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