high-frequency bidding explained

Post on 15-Jul-2015

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High-Frequency Bidding Explained

Why paid search advertisers are using a new approach to increase return on campaign investment

Advertisers buy search clicks

Search clicks and behavior vary throughout the day

Shopping searches increase in the early evening

Online dating searches heat up after dinner Travel searches

spike around lunch time

In the high-stakes world of paid search, advertisers need a solution that can frequently determine the times of day to increase/decrease bids based on volume and ROI

Searches are more likely to convert at different times throughout the day

It starts with bidding on a keyword

Keyword “laptop” in 24 hour day

$0.25 bid

5am 5am 5am 5am 5am6am 8am 9am 10am

11am 5am 5am 5am 5am12pm 1pm 2pm 2:30p

3pm 5am 5am 5am 5am3:40p 4pm 5pm 5:15p

5:20p 5am 5am 5am 5am6pm 9pm 10pm 11pm

Most advertisers set a max bid price based on a once a day average bid.

However, the optimum bid varies based on the real-time marketplace and your competition

Conversion rate is low, lower bid is ok

ROI goal will be met if higher bid is placed

Keyword “laptop” in 24 hour day

$0.25 bid

$0.10 5am 5am 5am 5am$0.10 $0.05 $0.06 $0.15

$0.20 5am 5am 5am 5am$0.21 $0.18 $0.15 $0.19

$0.05 5am 5am 5am 5am$0.10 $0.25 $0.20 $0.26

$0.30 5am 5am 5am 5am$0.49 $0.35 $0.30 $1.25

High-Frequency bidding changes the game

Keyword “laptop” in 24 hour day

$5 CPA Goal

$0.10 5am 5am 5am 5am$0.10 $0.05 $0.06 $0.15

$0.20 5am 5am 5am 5am$0.21 $0.18 $0.15 $0.19

$0.05 5am 5am 5am 5am$0.10 $0.25 $0.20 $0.26

$0.30 5am 5am 5am 5am$0.49 $0.35 $0.30 $1.25

Based on your business goals

Real-time data modeling determines the optimum price to pay at specific times throughout the day

In the high-stakes world of paid search, you need to adjust frequently and iterate aggressively

Once-A-Day Bidding vs. High-Frequency Bidding

High Frequency Bidding● Adjust bids to market changes

throughout the day● Frequent testing● Aggressive iteration

Old WayPay the average

$0.25 bid

$0.25 5am 5am 5am 5am$0.25 $0.25 $0.25

$0.25 5am 5am 5am 5am$0.25 $0.25 $0.25 $0.25

$0.25 5am 5am 5am 5am$0.25 $0.25 $0.25 $0.25

$0.25 5am 5am 5am 5am$0.25 $0.25 $0.25 $0.25

$0.25

$5 CPA Goal

$0.10 5am 5am 5am 5am$0.10 $0.05 $0.06 $0.15

$0.20 5am 5am 5am 5am$0.21 $0.18 $0.15 $0.19

$0.05 5am 5am 5am 5am$0.10 $0.25 $0.20 $0.26

$0.30 5am 5am 5am 5am$0.49 $0.35 $0.30 $1.25

High-Frequency Bidding delivers 20%+ average uplift

Revenue After Search Costs Search Costs

See the difference

What can High-Frequency Bidding do for your paid search campaign performance?

Contact us at sales@campanja.com

To calculate the difference out, visit http://campanja.com/savings-calculator/

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