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) advert.
Bids are dictated by a brand’s advertising budget; brands who are willing to bid high enough will win an advert placement over their competition.
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 advert over the course of the campaign.
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Additional resources about Bid
- The 3 Types of Bid Management Systems & How They Work
- What is bid in digital marketing?
- Bid Management- Why It Matters