Win rate refers to the percentage of ad impressions won in real-time bidding (RTB) auctions or programmatic advertising exchanges. It represents the success rate of bidding on available ad inventory and winning the opportunity to serve an ad. Multiple advertisers or demand-side platforms (DSPs) submit bids when an ad exchange conducts an auction for available ad impressions in real-time. The bid with the highest value wins the auction and gets the opportunity to serve its ad to the user.
The win rate is calculated by dividing the number of auctions won by the total number of auctions participated in and multiplying the outcome by 100 to express it as a percentage. For example, if a DSP participates in 100 auctions and wins 30, the win rate would be 30%. A high win rate indicates a successful bidding strategy and effective targeting, as the DSP is winning a significant portion of the auctions it participates. It implies that the DSP’s ads serve the intended audience and achieve the desired reach or engagement.
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