Dynamic Pricing

The price of an ad impression within a real-time bidding (RTB) auction, which fluctuates based on data signals known about a particular user at the moment of the auction. Rather than applying a flat rate to every impression, dynamic pricing lets the market value of each impression shift in real time — meaning a highly targeted impression served to a user who matches an advertiser's ideal profile will typically command a higher price than an untargeted one.

The key driver of dynamic pricing is user data: demographic attributes, browsing behaviour, purchase intent signals, and contextual factors all influence what buyers are willing to bid for a given impression. Because RTB auctions resolve in milliseconds, this valuation happens automatically as part of the bidding process.

The contrast to dynamic pricing is fixed pricing, where ad inventory is sold at a predetermined, static cost regardless of the user or context. Fixed pricing offers predictability for both buyers and sellers, while dynamic pricing allows inventory value to reflect real-time demand and audience quality.