In the context of display advertising, a bidding strategy is a plan that an advertiser or a bidder uses to determine how much to bid in response to a bid request from an ad exchange as part of an auction or bidding process for the opportunity to display an ad to a specific user on a specific website or app. A bidding strategy can take many forms, and the exact approach will depend on the advertiser's goals, budget, and other factors. Some common bidding strategies in display advertising include targeting a specific cost-per-action (CPA), maximizing clicks or impressions, and bidding based on the value of the ad impression to the advertiser.

The following are a few more detailed examples of bidding strategies that advertisers can use in the context of display advertising:

Targeting a specific return on investment (ROI): In this strategy, the advertiser sets a target ROI and calculates how much they are willing to pay for each ad impression based on their expected conversion rate and the value of the conversion. This allows the advertiser to control their spending and optimize their campaign for profitability.

Maximizing conversions: In this strategy, the advertiser sets a target cost-per-conversion (CPC) and bids the maximum amount that they are willing to pay for each conversion. This allows the advertiser to maximize the number of conversions they receive within their budget.

Bidding based on audience: In this strategy, the advertiser uses information about the user, such as their demographics, interests, and browsing history, to determine the value of the ad impression and bid accordingly. This allows the advertiser to target their ads to specific audience segments and optimize their campaign for engagement and conversions.

Bidding based on context: In this strategy, the advertiser uses information about the website or app where the ad will be displayed, such as its content, audience, and traffic, to determine the value of the ad impression and bid accordingly. This allows the advertiser to target their ads to specific contextually relevant websites or apps and optimize their campaign for engagement and conversions.