Add/Modify Defination
⚡Google Ads
💸Performance Marketing

Bid shading

A technique used to optimize bid strategies in auction-based advertising, reducing buyer's bids across subsequent auctions to find the optimal price that ensures a balance between auction success and bid ceiling. It involves finding an average bid between the highest and lowest price bids, preventing overpaying in first-price auctions, taking into account factors such as pricing data, site, ad size, exchange, and competitive dynamics. The bid price will generally rise as the win rate decreases, using the algorithm can result in buyer savings for every auction won where shading is enabled.

Categories:
⚡Google Ads - 💸Performance Marketing

Get in Touch

For the list above, we were keen on creating an integrated and comprehensive digital dictionary
starting from basic terms such as “social media,” “website,” or “advertisement" to the advanced terms
that new and experienced marketers alike may have overlooked or be fuzzy on.


If you have any questions/feedback please drop a message to
hi@glossary.digital

© 2022 Digital Glossary