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

Do you know how top optimize your Native Advertising campaigns on a CPM Bidding model? In this video Colin Dijs together with Ross Macfarlane will show you the most important things to take into consideration!

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Bid:
Bidfloor
1. First Price Bidding 2. Second Price Bidding

Win Rate – Supply & Demand

Per 1000 impressions

Reach:

Bid vs. other bids = win rate%

Publisher inventory

Algorithm:

Equal distribution


Rules:

iCTR%

$10 CPM – 1000 impressions – iCTR 1% = 10 clicks for $10 = $1 CPC
$10 CPM – 1000 impressions – iCTR 2% = 20 clicks for $10 = $0.5 CPC
$20 CPM – 1000 impressions – iCTR 2% = 20 clicks for $20 = $1 CPC

Bid vs. expense model = Simple

Higher iCTR = Higher CPM you can afford

Competition

Bid
Win Rate (Reach Potential)
Creatives Optimized
Increasing Bid Floor
Relative Competition
CPC vs EPC
Cash flow

100% ROI over $100 ad spend = $100
10% ROI over $1100 ad spend = $110

Bid UP = CPC UP – EPC Stay Same = ROI DOWN


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*You can assume that I will receive a commission for anything I recommend. Any earnings or income representations are aspirational statements only and results are not typical. There is no guarantee that you’ll receive the same results or any results at all. Your results will depend entirely on your work ethic. These videos are for educational purposes only.

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