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Auto Bidding - PPC Glossary

Auto Bidding - PPC Glossary

A type of keyword bidding in which an advertiser sets a maximum bid for a specific keyword but may pay less for each click through of that keyword. For example, if Advertiser A bid 0.10 on a keyword, but the next highest bid (Advertiser B) on that keyword is $0.05, then Advertiser A will pay only 0.06 for each click through. However, if Advertiser B changes his/her bid from 0.05 to 0.09, then Advertiser A will pay the full 0.10 (Advertiser A's maximum bid) for each click through.