Bidding Strategies for Programmatic Ad Pricing Models

What exactly is Programmatic advertising? It is about using technology to automate the buying and selling of targeted online advertising in real-time

Now that it has been defined, let us discuss the process of bidding for programmatic ads

Programmatic ad pricing models can get confusing especially when clubbed with an alphabet soup of abbreviations like CPC, CPM. Let’s try to understand these terms and address the significant difference between each of them in this blog post. Then we can talk about pricing models and bidding strategies

So it all begins with the ad auction. During an ad auction, advertisers bid on display ads that would be shown to their audience through ad placements. These advertisers will each set a price for the clicks on their ads or the impressions served which leads us to the next step:

The bid strategy

Let us say you have a budget in mind to bid for ad space, what you now need is a bid-strategy, in other words, you need an overall approach for buying ads, managing spends and achieving your advertising objectives. These objectives can range from driving traffic to websites to getting more demo sign-ups to increasing sales

Depending on your objectives you can choose from:

Cost per Click (CPC) – The number of clicks that your ad attracts has always been a good indicator of ad effectiveness since the inception of programmatic ads. In the CPC pricing model, the publisher gets paid for the number of ad clicks. If you are looking to drive visitors to your website, The CPC programmatic ads are a real ace up your sleeve. However, multiple clicks by a single visitor can drive up the costs because the CPC model does not consider the number of impressions it took to get those clicks. Here is where the CPM model steps in

Cost per Mille (CPM) – CPM model stands for cost per thousand impressions. In this programmatic pricing model, the publishers are paid according to the number of times the ad was shown. This is a great pricing model option for raising brand awareness since the goal of the ad is exposure to as many eyeballs as possible. The CPM based programmatic ads are best suited as display ads and advertisers can set the CPM value to define how much they are willing to pay for a thousand impressions

Programmatic

In the case of a daily/ weekly spend limit, advertisers would be wise to use programmatic bidding to eliminate the guesswork that comes with manual bid management. Doceree’s programmatic bidding algorithm will then determine the best bid to help you reach your goal while staying within your daily budget. You can also adjust your daily spend at any time

Programmatic ads align your campaign with your goals, giving you full control over your target performance metrics, such as cost-per-click (CPC) or cost-per-thousand-impressions. With the help of the Doceree platform, your bid will be optimized in real-time to help you achieve your goal