How to Optimize on a CPC Bidding Model While Using Native Advertising

Do you want to know how to optimize a Native Advertising campaign while using the CPC bidding model? In this video Colin Dijs will explain to you in detail the most important metrics to consider.

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Bid: CPC = Cost per click

CPC smaller than EPC = $$

Reach:

RTB: Real time bidding
Supply & Demand = Equilibrium

CPC 0.01 = Reach 0
CPC 0.1 = Reach 5% total
CPC 1 = Reach 85% total

Question? ++ ROI

Low Bid, Work Bid


Algorithm:

If 1 person out of 1000 impressions clicks on the ad – so low VCTR but getting great reach/much more impressions for a low CPC from the algorithm

If 10 people out of 1000 impressions clicks on the ad – so high VCTR but not great reach with the algorithm

If you want the same amount of people to go to the lander, just let option 1 run to 10,000 impressions and you get the same amount of clicks as option 2.

The system will give you the 10,000 impressions so much quicker with option 1 as it is favouring your teaser and giving it more reach for a low CPC.

You are paying for the click, not the impressions, so spend is the same.

If you are getting more reach/impressions, then the algorithm is favouring that teaser.


Rules:

1. Keep bids on creatives the same
2. vCTR is sub metric
3. 10k Impressions

4. CPA Rule on Widgets
X times PO
Offer PO = $50
1.5 times PO
CPA Rule = 1.5
$75 Max, no conversion? Pause placement.

Competition

Competition = Algorithm + Reach / Bid

Algorithm Favouritism = Creating Good Creatives

Push Reach:

100% ROI over $100 Spend = $100

10% ROI over $1100 Spend = $110

Golden Rule: When you scale ROI goes down

Raise the bids 1. Coefficient Widgets 2. increase teaser bids

ONCE THE TESTING PHASE IS COMPLETED

EPC

Profit = X
Conversions = X Profit
CR % = X Conversions = X Clicks
X Clicks = X Visits to Lander
X Visits to Lander = X Click on Teaser
X Clicks on Teaser = CPC = X
X = Budget



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