Bidding Strategy

A bidding strategy is the approach a demand-side platform (DSP) uses to determine how its bidder should place bids in a real-time bidding (RTB) auction. It defines the logic — whether rule-based or algorithmic — that governs bid price selection for each available impression.

Common examples include fixed price strategies, where the bidder submits a predetermined static bid, and dynamic price strategies, where the bid is calculated in real time based on signals such as audience data, predicted conversion probability, or inventory quality. More sophisticated DSPs may layer in goal-based strategies (e.g., targeting a specific cost-per-acquisition) that continuously adjust bids to optimize toward a campaign objective.