Bidding Strategies

Depending on the type of software you use to run your display campaigns, you may have to consider a bidding strategy, and one that is most appropriate for your business. Certain media agencies will ask for a default CPM (cost-per-thousand) bid, which is essentially the amount you are willing to spend for every 1000 impressions. Other advertising software will ask you to consider a marketing goal, and based off of that goal will provide you with bidding strategies such as ‘target impression share’ or ‘enhanced CPC’. That said, not all advertising software requires bidding strategies, with automated processes in place that allow for more time-efficient and performance driven campaigns. Adacado is a good example of that!

Sometimes you will be asked to set a default CPM bid which is the amount you are willing to spend per 1000 impressions. You can adjust this bid up or down as many times as you want. You would want to adjust your bids in the case of increased competition, seasonal changes, and fluctuations in the auction price.

This is where bidding strategies are focused around a particular marketing goal in mind – Google does this! Here, you will choose a bidding strategy that directly aligns with your business goals, so that you can focus on getting the results you want. Some marketing goals to keep in mind while deciding on your bidding strategy include: brand awareness, customer consideration, conversion-focused and revenue-focused.

An example of a bidding strategy that aligns with the goal of increased sales/conversions is ‘maximize conversions’ or ‘target cost-per-acquisition’. Maximize conversions means getting as many conversions as possible within a set budget. Whereas, target cost-per-acquisition automatically sets bids to maximize conversions while keeping within your cost-per-acquisition goal.

Other times, you may not even need a bidding strategy in place, as advertising companies will bid on your behalf. This is where Adacado fits in nicely. In the Adacado platform, all that is required to get your ads running is choosing when and how many ads you would like served, as well as where you would like your ads shown. This automated process allows advertisers to quickly build campaigns.