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How do ad exchanges and real-time bidding platforms work?
How do advertisers set their budget for real-time bidding?
Advertisers set a maximum bid price per ad impression which they are willing to pay. This bid is based on the targeting options, the ad's format, and the expected return on investment. Once the auction begins, the real-time bidding platform evaluates all available bids and selects the highest bid to display to the user. If the winning bid is less than the bidder's maximum, only the winning bid price is deducted from the budget.