Auto Bidding

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The opposite of Fixed Bidding in paid Search campaigns. A type of keyword bidding in which an Advertiser sets a maximum bid for a specific keyword, but may pay less for each clickthrough of that keyword. For example, if Advertiser A bid $0.10 on a keyword, but the next highest bid (Advertiser B) on that keyword is $0.05, then Advertiser A will pay only $0.06 for each clickthrough. However, if Advertiser B changes his/her bid from $0.05 to $0.09, then Advertiser A will pay the full $0.10 (Advertiser A’s maximum bid) for each clickthrough.