There are 3 advertisers bidding in the auction. Advertiser A bids $12 and has a relevancy score of 4. Advertiser B bids $8 and has a relevancy score of 9. Advertiser C bids $4 and has a relevancy score of 3. Which advertiser wins the auction?
- Advertiser B
- Advertiser C
- None of them
- Advertiser A
Explanation:
Advertiser B wins the auction. In an auction-based advertising system like this, the winner is determined not solely by the bid amount but also by the relevancy score, which reflects the ad’s quality and relevance to the target audience. Advertiser B, despite bidding lower than Advertiser A, has a significantly higher relevancy score, indicating that their ad is more relevant and engaging to the audience. The auction system often prioritizes ads with higher relevancy scores, as they are more likely to provide a positive user experience and generate higher engagement. Therefore, Advertiser B, with a bid of $8 and a relevancy score of 9, wins the auction over Advertiser A, who bid $12 but has a lower relevancy score.