Definition of Keyword bidding

Keyword bidding is a practice in online advertising, particularly in pay-per-click (PPC) advertising models, where advertisers bid on specific keywords or phrases to display their ads when users search for those terms. Advertisers participate in auctions, setting a maximum bid amount they are willing to pay when a user clicks on their ad. The ad placement is often determined by the bid amount and other factors such as ad quality and relevance. Higher bids may lead to better ad placement, potentially increasing visibility and clicks. Keyword bidding is a strategic aspect of online advertising campaigns, allowing advertisers to target their audience based on the keywords users are likely to use in search queries, ultimately influencing the visibility and performance of their ads in search engine results.