However, it is also possible that the second and even the third bidder could win the ad space since their content is relevant and they are offering significantly more money than the fourth advertiser. This means that the fourth advertiser has a good chance of winning the bid, despite the fact that they are not the highest bidder. The probability that a user will click on the pin is very high. The fourth bid directly relates to the fitness coach’s content as every pin features sports equipment. The third bid will probably be rejected if there has been no mention of sport nutrition on the fitness coach’s social media channel.
This can be seen in their selection of sportswear pins and also the sportswear brands they offer are recognizable. The second bid will be shortlisted because it relates to the fitness coach’s content. The advertiser probably used an unsuitable category when creating the ad. The highest bid will be rejected because it does not match the content of the fitness coach’s social media channel. Advertiser, sports equipment – $0.07 per click.Advertiser, sport nutrition – $0.11 per click.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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