Open Auction
An Open Auction is a type of real-time bidding (RTB) environment where multiple advertisers compete simultaneously for the same ad impression. Each bidder submits an offer through a DSP, and the highest bid wins, subject to pricing and targeting rules defined by the publisher.
This open marketplace model is the backbone of programmatic advertising, offering transparency, efficiency, and scale. It allows advertisers to reach vast audiences instantly while giving publishers access to diverse demand sources.
For example, when a user loads a webpage, an ad request triggers an open auction within milliseconds. Advertisers targeting that audience bid in real time, and the winning creative is displayed almost instantly. Open auctions enable both sides to transact dynamically, based on performance data and budget constraints.
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