I wish the flow is explained a little better. I don't understand why bid is already known

I thought auction, which determines bid, happens after ad prediction.

Hello @Jie_Fu,

Basically, The auction of the ad depends upon the bid, which is the amount the advertiser is willing to pay for a given action such as a click or purchase. So to auction an ad, we have to know this factor already because the auction algorithm based on the bid and predicted ads score to select the top most relevant ads shown to the user.

I hope I have answered your query; please let me know if you still have any confusion.

Thank You :blush: