Advertisers sign contracts that allow them to compete with other advertisers in a private auction hosted by a publisher or, more commonly, an ad network. Each advertiser tells the host the maximum amount he or she is willing to pay for a specific ad spot (usually based on a keyword), usually using an online tool to do this. The auction is conducted in an automated fashion each time a visitor triggers the ad spot.
If the ad slot is part of a search engine singapore business directory results page (SERP), then automated bidding occurs whenever someone searches for the keyword being bid on. All bids for the keyword are then compared for the searcher's geographic location, search date and time, etc., and a winner is determined. All of this happens in real time, so this is called real-time bidding, or RTB, and is done in a fraction of a second. In cases where there are multiple ad slots (which is often the case on SERPs), there may be multiple winners, and their ranking on the page is affected by each person's bid amount and the quality of their ad. Bids and quality scores are used to determine the rank of each advertiser's ad. The ad with the highest ad rank is displayed first. The three main Google and Bing match types are broad, exact, and phrase. Google Ads and Bing Ads also offer a broad match modifier type (although Google retired this modifier in July 2021), which differs from broad match in that the keyword must contain the actual keyword terms in any order and no relevant variations of the terms.
In addition to ad slots on SERPs, large ad networks also allow contextual advertising on third-party properties that they partner with. These publishers contract to host ads on behalf of the network. In return, they receive a portion of the ad revenue generated by the network, which can range from 50% to more than 80% of the total revenue paid by advertisers. These properties are often referred to as content networks.,The advertisements are calledContextual Advertising, because the ad slot is associated with keywords based on the context of the page it is on. Generally speaking, ads on the content network have much lower click-through rates (CTR) and conversion rates (CR) than ads on the SERPs, and therefore are less valuable. Content network assets can include websites, newsletters, and emails.