Dynamic pricing pertains to scenarios in which the price of an ad impression varies based on the available user data at the time of serving the ad. This pricing model frequently occurs in real-time bidding environments, where multiple advertisers, each possessing distinct campaign parameters, engage in auctions and compete.

For example, when an ad impression aligns with a user who fits the specific criteria sought by several primary real estate dealers, these advertisers are inclined to submit higher bids, causing the impression’s price to surpass that of a generic ad impression.

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