What is an AD AUCTION?
An ad auction happens when you have one ad space and mutiple ad campaigns competing to be served in that ad space. The auction has a couple rules that define the winner - CTR and CPM/CPC.
Why use an AD AUCTION?
An ad auction is used to select the ads that will appear on your page and determine how much money you will make from each ad. To take part in the auction, advertisers must define the maximum amount they are willing to pay to serve an ad one time on a website. During the auction, maximum bids are compared and the advertiser with the highest bid gets his/her ad shown.
Does G&R have an AD AUCTION similar to Google's?
The short answer is no. G&R is currently developing an ad auction similar to what is used by Google but at the moment, G&R ads are served using a simple price comparison auction. Google ranks advertisers based on maximum bid and a metric called "Quality Score," which combines multiple different factors, including quality of landing page.