A Bid is an offer of a particular amount of money for something when competing against other people to buy it. In other words, it is an amount that an advertiser is willing to pay in an auction to achieve their desired outcome.

The success of your campaign relies on keeping it profitable means getting a greater outcome for your investment by keeping costs low and results high.

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To reduce your bidding efforts, Sprinklr has introduced Smart Bidding which is an AI-based algorithm that is trained on your data to predict the best bid value for your ad sets. Smart Bidding saves time and improves the performance of your ads.

In this article, we will understand the current bidding pain points and how Smart Bidding is different.

Understanding the Auction System

An ad auction is used to determine the best ad to show to a person at a given point in time. Each time there's an opportunity to show an ad to someone, an auction takes place to determine which ad to show to that person. Billions of auctions take place every day across channels.

To ensure that the winning ad maximizes value for both people and businesses, the winner of the auction is the ad with the highest total value. The total value is a combination of three following major factors:

• Bid - Amount the advertiser is willing to pay.

• Estimated Action Rates - Estimate of whether a person converts from an ad.

• Ad Quality - Measure of the quality of an ad as determined by people viewing or hiding the ad and assessments of low-quality attributes in the ad.

The below table is explaining how the Auction System works in general.

Current Bidding Pain Points

Sprinklr Smart Bidding

Smart Bidding is the set pros of manual bidding with none of the cons. It is an AI-based algorithm that is trained on your data to predict the best bid value for your ad sets. By automating the manual bid process with AI, Smart Bidding saves time and improves performance.