Online Learning Center | BiddingOwl

How Real-Time Bidding Works (And Why It’s Great for Fundraisers)

Written by Adie M. | Feb 4, 2026 8:07:51 AM

Pens, clipboards, and crowded bid sheets used to be part of every fundraiser. But they also caused missed bids, slow updates, and extra work after the event.

Today’s donors expect faster and simpler ways to participate. And that shift has made real-time bidding the new standard for nonprofit auctions.

Real-time bidding updates bids instantly and notifies donors the moment they’re outbid, keeping supporters engaged whether they’re in the room or at home.

In this article, we explain how real-time bidding works and why it helps fundraisers raise more with less effort.

The Death Of The Paper Bid Sheet

If you’ve ever hosted a fundraiser, you know the scene. Guests crowd around a clipboard, pens disappear, and bids get missed. At the end of the night, volunteers rush to decipher handwriting and totals.

That process worked years ago, but expectations have changed. Now, donors expect mobile-friendly, instant experiences. That’s where real-time bidding comes in.

Real-time bidding processes bids the moment they’re placed. Every bidder sees updates instantly and gets notified when they’re outbid. There’s no waiting and no guesswork.

For nonprofits, this shift isn’t about flashy tech. It’s about removing friction, keeping donors engaged, and raising more funds with less manual work.

How Real-Time Bidding Works: A 3-Step Journey

Real-time bidding sounds technical, but the experience feels simple for donors. Behind the scenes, the system handles speed, updates, and notifications automatically.

Step 1: The Instant Notification

When someone places a bid, the system updates immediately.

The current high bid refreshes across every connected device within milliseconds.

A donor bidding from home sees the same price as someone at the gala. There’s no delay and no risk of outdated information.

This instant visibility keeps bidding fair and transparent. It also prevents disputes that often happen with paper bid sheets.

Step 2: The Outbid Alert

Once a higher bid comes in, the previous bidder receives an alert by SMS or email within seconds.

That quick notification does more than share an update. It taps into a well-documented behavioral principle known as “loss aversion,” where people feel a stronger urge to act when they’re about to lose something they value. This response can significantly influence decision-making.

In a fundraising setting, that timely alert often motivates bidders to re-engage and place another bid.

In a traditional paper auction, a donor might not realize they’ve lost their "lead" until the end of the night. With BiddingOwl, an SMS or email alert reaches the donor within seconds of a higher bid. This immediate feedback loop creates a continuous cycle of re-engagement, often resulting in higher final sale prices than static paper sheets.

Step 3: Proxy Bidding – Set It And Forget It

Proxy bidding lets donors set their maximum bid upfront. The system automatically raises their bid in small increments when needed.

This helps supporters stay competitive without them having to watch the auction all night. It also keeps prices climbing naturally until the maximum limit is reached.

Why Real-Time Bidding Acts As A Revenue Engine In Auctions

Real-time bidding changes how donors interact with your auction. Below is a clear comparison between traditional methods and real-time bidding.

Feature

Traditional Paper Bids

Real-Time Bidding

Accessibility

Only attendees in the room

Donors can bid from anywhere

Competition

Slow and easy to forget

Fast-paced and continuous

Data Tracking

Manual entry after events

Real-time item and bidder data

Checkout

Long lines and paper invoices

Mobile checkout and digital receipts

The shift to real-time bidding is a logistical "revenue engine" because it solves the two biggest drains on nonprofit resources: manual data entry and checkout friction.

  • Eliminate Manual Entry: Volunteers no longer have to decipher handwriting or manually total bids at the end of the night.
  • Faster Checkout: Traditional auctions often suffer from long checkout lines. By using Stripe or PayPal integrations, BiddingOwl automates digital receipts and mobile checkout, allowing donors to pay securely and depart without the wait.

Gamification And Urgency

Real-time bidding adds urgency without pressure. Countdown timers remind donors when bidding is about to close. Leaderboards highlight popular items and spark friendly competition.

These elements encourage repeat bids and higher final prices. They also keep donors involved longer during the event.

Mobile Bidding: The Remote Control for Your Fundraiser

Real-time bidding turns every guest's smartphone into a personal auction paddle. By moving the auction to mobile, you aren't just 'going digital' – you're increasing your reach.

  • Push Competition: When a donor is at the bar or chatting at their table, a mobile 'Outbid Alert' pulls them back into the action instantly.
  • Go Beyond the Room: Mobile bidding allows supporters who couldn't attend in person to bid from home, effectively removing the 'capacity limit' of your venue.
  • Zero Lines: Mobile bidding concludes with mobile checkout. Donors pay on their phones and show a digital receipt to pick up their items, eliminating the dreaded 'checkout line' at the end of the night.

BiddingOwl Features That Power Your Auction

We’ve spent over 10 years refining tools for nonprofit auctions. Today, more than 30,000 organizations trust us to support their events.

Each feature focuses on ease, speed, and donor confidence.

Custom Auction URLs

Your auction lives on a branded, shareable website. Supporters can preview items, watch favorites, and bid anytime.

Mobile-First Design

Most bids now happen on phones. Our platform is designed for small screens and quick actions.

Streamlined Checkout and Fulfillment

Once the auction ends, the system handles checkout and receipts. Donors pay securely, and volunteers avoid manual follow-ups.

We also integrate with Stripe and PayPal for trusted payments.

Frequently Asked Questions

Is Real-Time Bidding Secure?

Yes. Payments process through established providers like Stripe and PayPal. These platforms follow strict security and compliance standards.

Is It Hard For Non-Tech-Savvy Donors?

Most donors place bids in two clicks. There’s no app download and no complex setup.

Can We Use It For In-Person Events?

Absolutely. Many organizations run hybrid events with in-room and remote bidders. Everyone competes on the same items in real time.

Hybrid events succeed because they remove the bottleneck of the physical bid sheet. Instead of guests crowding around a table and struggling to read handwriting, they use their own mobile devices.

  • Instant Syncing: A bid placed by someone at the gala refreshes across all connected devices (including those of remote bidders) within milliseconds.
  • Transparency: This instant visibility ensures the auction remains fair and prevents the disputes common with manual paper tracking.

Can We Keep The Auction Open Before Or After The Physical Event?

Yes. Unlike paper sheets that must be pulled at a specific time, digital bidding allows you to open your "virtual doors" days early to build momentum and keep them open after the gala ends to capture last-minute donations.

Do My Donors Need To Download An App?

No. BiddingOwl is a web-based platform, meaning donors simply click a link to start bidding. This removes the "app fatigue" barrier and ensures even less tech-savvy guests can participate instantly.

Final Thoughts

Real-time bidding removes barriers between donors and your mission. It replaces paper, guesswork, and long lines with clarity and speed.

When bidding feels easy, supporters stay engaged. That engagement often turns into higher bids and better results.

If you want to see how real-time bidding fits your next fundraiser, you can explore BiddingOwl for free and experience it firsthand.