How System Updates bid Amount?

In previous example, when the user enters a budget greater than 63, the auction system creates a campaign. Let us consider when a user has entered a budget of 126. Now, we will see how the auction system updates the bid amount for associated keywords for a given time period.

The user has entered the start date as May 1 and the end date as May 7. Hence, the active time period of the campaign is 7 days. We have 2 associated keywords with the newly created campaign. The updated bid amount for the keyword is,

updateFactor=((Bid of the day / 2) / minabid required) * Budget

In the above case, Update factor of the keyword "test" on May 1 is, = (5 /63) * 126 = 10.

Update factor for each keyword on a particular day is calculated by calculating fraction of the minimum bid required and we scale it to the budget of the user.