Bidding with budgets: Data-driven bid algorithms in digital advertising

Dirk Bergemann, Alessandro Bonatti and Nicholas Wu

International Journal of Industrial Organization, 2025, vol. 102, issue C

Abstract: In digital advertising, auctions determine the allocation of sponsored search, sponsored product, or display advertisements. The bids in these auctions for attention are largely generated by auto-bidding algorithms that are driven by platform-provided data.

Keywords: Data; Advertising; Competition; Digital platforms; Auctions; Automated bidding; Managed advertising campaigns (search for similar items in EconPapers)
JEL-codes: D44 D82 D83 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:102:y:2025:i:c:s0167718725000384

DOI: 10.1016/j.ijindorg.2025.103172

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