The “auction” is not a realtime auction that you might be used to IRL or anything, and these brands likely have AI already doing that. They likely have certain bid strategies and ad budgets. So they may be willing to pay up to $X to be in that spot for a user with demographic/behavior profile A and pay up to $Y for a user with profile B then the have an overall budget for that ad spot of $Q per day. All of those parameters are likely set by a specialized AI that monitors bid strategy over time. The AI might see that users with profile B download the app via the ad more often so they will spend more to capture that audience. It’s possible companies have their own internal strategies, but most ad platforms have at least some of that analysis built in and will regularly offer recommendations based on the data and have had that available for years.
The “auction” is not a realtime auction that you might be used to IRL or anything, and these brands likely have AI already doing that. They likely have certain bid strategies and ad budgets. So they may be willing to pay up to $X to be in that spot for a user with demographic/behavior profile A and pay up to $Y for a user with profile B then the have an overall budget for that ad spot of $Q per day. All of those parameters are likely set by a specialized AI that monitors bid strategy over time. The AI might see that users with profile B download the app via the ad more often so they will spend more to capture that audience. It’s possible companies have their own internal strategies, but most ad platforms have at least some of that analysis built in and will regularly offer recommendations based on the data and have had that available for years.