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The process that happens with each Google search to decide which ads will appear for that specific search and in which order those ads will show on the page (or whether or not any ads will show at all). Each time an ad is eligible to appear for a search, it goes through the ad auction.

Both of these functions operate in the programmatic advertising space, using modern technology to buy and sell ad inventory. However, the major difference is that RTB advertising uses an auction model, while Programmatic Direct uses a non-auction model.

Each time an ad is eligible to appear for a search, it goes through the ad auction. The auction determines whether or not the ad actually shows and in which ad position it will show on the page. Here's how the auction works: When someone searches, the Google Ads system finds all ads whose keywords match that search.

There are 5 main factors in the ad auction that determine which ads appear, and in what order: Your bid: When you set your bid, you're telling Google Ads the maximum amount you're willing to pay for a click on your ad. How much you actually end up paying is often less, and you can change your bid at any time.

The ad auction is used to select the ads that will appear on a publisher's sites and determine how much they earn from those ads. All ads pay different amounts of money, depending on factors such as how much an advertiser has bid for the ad.

Commonly used in programmatic media, auction-based pricing is a dynamic pricing model that ensures the prices paid for ad impressions are based on market demand.

Auction based programmatic buying refers to the process of listing advertising space for sale on a digital screen and allowing advertisers to “bid” how much they would pay for that space at any given time. If one advertiser is willing to pay more for said space/time then the ad space is awarded to the highest bidder.