Aligning Bidding Strategy With Your Advertising Campaigns

Different types of bidding strategies

Are you confused regarding which bid strategy to use? How can you optimize your ad campaigns? Before you strategize your advertising campaign, you need to decide on your goal first. Then find the proper metrics to track your progress toward it. Ads can be shown on millions of websites across the Internet, so that you can make most of each opportunity to improve your performance. Here are some ways you can optimize your ad campaigns:

Know more about different types of bidding which boost up your paid campaigns:

  1. Cost per mile: Cost per mille (CPM) also known as cost per thousand (CPT) is a commonly used measurement in advertising. It usually reflects the price of 1000 banner impressions in currency. People can bid in any local currency, i.e. dollar, rupee, pound sterling, etc. Payment depends on the number of impressions solely. For example, a banner is being shown 200,000 times at CPM of $0.5, means that the payment by the advertiser to the publisher would be 200,000 * 0.5 / 1000 = $100.
  2. Cost per click: Cost Per Click (CPC) refers to the actual price you pay for each click in your pay-per-click (PPC) marketing campaigns. A click on one of the PPC text ads represents a visit, or an interaction with company’s product or service offering. Every click in a PPC campaign represents attention from a user who is searching for something that you offer.
  3. Cost per acquisition(CPA): is a method of advertising whereby the advertiser only pays when an advert delivers an acquisition. Moreover, CPA is very effective for an advertiser to pay because they only pay when the advertising has met its purpose. The publisher relies on the conversion rate of the advertiser’s website, something which the publisher cannot control.
  4. Cost per visit: Cost Per Visit is online advertising ad model based on where advertisers pay for the delivery of a targeted visitor to the advertiser’s website. Meaning the publisher is only paid when a user goes to a website or blog or form after clicking on the advertisement.
  5. Cost per lead (CPL): Cost per lead, often abbreviated as CPL, is an online advertising pricing model, where the advertiser pays for an explicit sign-up from a consumer interested in the advertiser’s offer. It is also commonly called online lead generation.
  6. Cost per action (CPA): Cost-Per-Action bidding allows advertisers to specify a bid amount for an action or conversion and get charged by the amount of conversions that they get. This differs from CPM and oCPM ads, which charge per impressions delivered on the site, as well as CPC ads which charge for on-site clicks
  7. Cost per video view: Cost-per-view (CPV) bidding is the default way to set the amount you’ll pay for your True View video ads (when created with AdWords). With CPV bidding, you’ll pay for video views and other video interactions (such as clicks on the call-to-action overlays, cards, and companion banners), whichever comes first. In Facebook’s sponsored video ads you can bid either with CPM or CPC. Key factor in this campaign is percentage(%) of video viewed.
  8. Cost per engagement for rich media and social media: With cost-per-engagement (CPE) bidding, advertisers only pay when users actively engage with ads. For example, advertisers pay for lightbox ads on a CPE basis, which means that publishers generate earnings from lightbox ads when users choose to engage with the ads, i.e. by hovering over them for two seconds to expand the ads.
  9. Cost Per Install (CPI) campaigns works on app installs on a smartphone or a tablet. In this model publisher gets paid only when APP has been installed. However, in an incentivized ad model rewards are available in exchange for completing an action, such as installing, engaging, registering for an app. While in the non–incentivized ad model, it promotes the app without the exchange of a reward. CPI still remains to be one of the most vital metrics for mobile app owners to measure.

Automatic bidding vs. manual bidding: which should you use?

In this industry, there are two main bidding methodologies one is automated bidding and another one is manual bidding. Each professional will have distinctive preferences regarding which method of bidding they choose to optimize their search accounts.

Manual bidding includes managing your bids straight through AdWords, which means making bid increases or decreases based on a number of factors such as performance of a keyword or ad position and big no to automated solutions. It is a manual process that requires a human intuition. With this type of bidding, you are able to bid on the individual keyword level and determine how active you want to be with your bids at the most specific level. However, at times, it is inefficient in nature. Observation on the account at daily basis can potentially prevent a marketer from seeing the bigger and clear picture.

Automated bidding is all about automation. It gives control to an algorithm to selectively choose the most optimal bids, with the option to adjust targets within bidding folders, by the campaign, or by ad group. It is an excellent third-party bid tool currently on the market. It enables you to bifurcate your campaigns and ad groups so that you can bid separately.

It is more efficient because automation can give you the freedom to manage your big accounts on a macro level. You can easily focus on growth opportunities or account strategy while also keeping tabs on everyday performance.

However, that doesn’t mean you leave your system. Automation uses these platforms and you still have to actively keep tabs on your account on a regular basis. Always make sure that these tools are effectively performing the way you intend them to.

How to align your bidding strategy with your goals?


  • Branding:The purpose of a brand-engagement campaign is to generate awareness and positive associations with your company and its products and services. A customer can interact with your brand in a variety of ways, including watching videos, taking up quizzes, playing games, survey sheet, spending time on your website, or communicating with other customers.If you’re interested in increasing your brand awareness, we offer you an opportunity to connect with a huge pool of customers at the right time and place on thousands of websites worldwide. You can use placement targeting, geographical or behavioral targeting to reach a relevant audience for your brand, using rich-media ad formats and Cost per mille (CPM) bidding.

  • Lead Generation: In this case Cost Per Lead (CPL) is involved. It defines how much revenue a publisher obtains when he creates a lead for an advertiser. For example, the publisher may place an ad for an investment site on his website. If a user clicks on the advertisement link, he is directed to the advertiser’s website where he can sign up for an investment account. If he chooses to sign up, a lead has been created and the publisher is paid a certain amount based on the CPL.

  • Product Launch:
    1. Bidding for video ads: If you aim to evaluate how engaged viewers are with your video content, where they choose to watch your videos, and when they drop off from watching it you need to use cost-per-view (CPV) bidding. With CPV bidding, you will pay for video views and other video interactions, such as clicks on the calls-to-action overlay (CTAs), cards, and companion banners.
    2. Bidding for Display, Search, and Shopping ads: A conversion is a particular action that you want to see on your website. With advanced bidding method, you just have to mention the amount you are willing to pay for a conversion, or cost-per-acquisition (CPA). You pay for each click; however, it will automatically set your bids for you to try to get you as many conversions as possible at the cost-per-acquisition you specified.

However, there is no bidding philosophy regarding the strategy because it is a matter of inclination according to the needs or goals of every account. The online advertising is continuously evolving with each product release and update. Ultimately, whichever bidding you choose, the tools are only as good as the person controlling them. If you want to run a successful advertising campaign, click here & get in touch with our advertising experts

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