3 Use Cases Where Automatic Bidding Helps On Getting Better Results

September 14, 2018



TheOptimizer Team

[vc_row][vc_column][vc_column_text]We are all guilty of bidding either too high or too low, or allocating very low budgets to our native advertising campaigns. By doing so we do not only increase the chances of ruining our campaigns performance, but also loose the chance of scaling and milking on time a promising campaign.

Hopefully automation can help us better handle such situations on time when certain threshold criteria are met. Here are 3 uses cases where automatic bidding can help us get better results on our native advertising campaigns.

Disclaimer: The below scenarios are used for demonstration propose only, please adopt automatic rules to your campaigns actual spent, revenue and performance.


1. Keep Up with The Competition

Example scenario: You’ve probably noticed this many times. One of your campaigns that is spending around $200/day is doing pretty well. Just in the first few days you are getting an average ROI of 30% at $0.251 average CPC. Then all of the sudden traffic from the top performing publishers along with the ROI falls down.

Cause of the problem: A couple of other online marketers, have seen your campaign on spy tools, copied it and are currently placing higher bids to compete with you on the same top converting publishers. And on the other hand you do not have the luxury to stay on top of a single campaign 24/7 in order to manually tweak bids and keep up with the competition.

Solution: Start implementing automatic bid change rules to increase bids based on actual campaign performance.

Rule 1: Increase Bid by 15% of Current Bid – Based on the Last 3 days’ performance.
IF Tracker ROI ≥ 20%

Rule 2: Increase Bid by 10% of Current Bid – Based on the Today’s  performance.
IF Traffic Source Spent ≥ $50
AND Traffic Source Clicks ≥ 150
AND Tracker ROI ≥ 15%

2. Increase or Decrease Bids to Meet Target CPA

Example scenario: You set a test budget of around $1000 during the 1st week to one of your new campaigns. The campaign starts converting and while you aggressively cut down under-performing publishers in the first few days, the end of the week approaches and you start analyzing your campaign stats.

Problem: Even though you have discovered a lot of converting publishers, not all of them are within your maximum acceptable cost per acquisition limit (CPA). This because one of your creatives is getting most of the traffic your campaign is receiving and has a higher CPC compared to the others.

Solution: Automatically decrease or increase creatives CPC if CPA is above the limit.

Rule 1: Decrease Creative Bid by 15% of the Current Bid – Based on the Last 3 Days’ performance.

IF Traffic Source Spent > $200
AND Tracker CPA > $15.3
AND Tracker ROI < 10%

Rule 2: Increase Creative Bid by 15% of the Current Bid – Based on the Last 3 Days’ performance.

IF Traffic Source Spent > $200
AND Tracker CPA < $15.3
AND Tracker ROI > 10%

3. Scale On Time

Example scenario: One of the campaigns you are running is showing good results during the last few days after running some initial optimization to it. So far the average CPA is around $9.7 and you are thinking that it is time to progressively increase your bids and budgets in order to milk out even more revenue from this campaign.

Problem: You have another campaign which is showing similar promising results and a limited budget. In addition to that, both these campaigns are running on a different time zone and your daily schedule doesn’t leave much room to wake up every night to check stats in order to increase bids and budgets.

Solution: Add automatic bid change and budget change rules to both promising campaigns.

Rule 1: Increase Bids by 10% of Current Bid – Based on Today’s performance

IF Tracker CPA ≤ $8.75
AND Tracker ROI ≥ 35%

Rule 2: Increase Daily Budget by 20% – Based on the Last 3 Days’ performance

IF Traffic Source Spent ≥ $800

AND Tracker ROI ≥ 45%

Of course the above examples cannot cover all possible scenarios where automatic bid and budget change rules can help you get better results on your native advertising campaigns.

Feel free to contact our support in case you have any specific question or a specific scenario where you are not sure if automatic bidding or budget change rules can help you on your daily campaign optimization routine.[/vc_column_text][vc_empty_space]

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