Advertiser, sportswear – $0.08 per click. Advertiser, cosmetic brand – $0.13 per click. This fitness coach specializes in explaining to their users which exercises are best done on which home fitness device and how to make their training even more efficient. This means that it is not only the bid size that matters but also the relevance of the ad itself and how it matches the advertising space in question.įour advertisers compete for an advertising position on a fitness coach’s social media channel and each place different bids. The quality of the ad and its relevance to the target group. The probability that the ad would lead to the advertiser’s desired result – this takes the selected campaign into account. The amount of the bid of the advertiser. 
Which advertisement wins the bid depends on the following three factors:
This means, that each company would indicate the price they would pay for an advertising space and then compete against other companies for that position.
As with offline auctions, all companies place a bid for an advertising space.
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