Bidding is the process that allows advertisers and brands to compete for premium ad placements by participating in the ad auctions. There are two bidding strategies offered in our platform: Dynamic Bidding and Fixed Bidding. These strategies tell us how to bid in the auctions, and can assist advertisers in reaching their specific campaign goals.
Dynamic bidding is designed to optimize the performance of ad campaigns by setting bids. Our Machine Learning driven engines dynamically adjust cost per click to constantly changing auction environments to save time and money.
There are two strategies under dynamic bidding: Default and Advanced.
Under the default option, our advanced algorithms automatically set bids for ads based on that ad's chances of getting clicks and impressions.
Advanced bidding strategy allows advertisers to reach their target Advertising Cost of Sales (ACoS). Advertisers should simply select their ad spend, and we will handle the rest. For example, if advertiser only want to spend one-tenth of their budget on advertising costs, they can set their ACoS target at 10%. This means that if they have a product priced at USD 20, they would spend no more than USD 2 in ACoS. Similarly, with a product priced at USD 30 they would only spend maximum USD 3 on ACoS.
Fixed bidding gives complete control to advertiser in setting their own bids at both campaign and individual keyword levels. By choosing this option, it is easy to set a maximum cost-per-click advertisers are willing to pay for each click. In comparison to the dynamic bidding, fixed bidding requires more time and understanding of how choosing the right bids work. This is because the process of finding the right bid amount that would result in more ad placements is an ongoing process of adjusting prices throughout the lifetime of the ad campaign. Having said that, our algorithms suggest optimal bid ranges that are most likely to perform.
To make things easier for advertisers in determining fixed bids at keyword level, our platform provides Machine Learning powered bid recommendations. These suggestions are presented as a range that is calculated by analyzing a group of winning bids for recent, similar ads within the same product category. Suggested bid range is updated on a daily basis, based on the competition in recent auctions.
Updated over 1 year ago