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Understanding Bidding Strategies for Traffic Junky (8)

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Hi Everyone,

I read somewhere previously that Matuloo posted or responded to...

Basically, When starting a new campaign, I recall start bidding and try to get 3rd position and work your way higher if need be depending on progress. The questions is, let's say you actually get more conversions being at the 3rd spot and if the opportunity arises to scale, would you stay at the 3rd position since it was the spot that help you see the most green? OR do you scale to the highest bid?

Hope this makes sense!

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Hello,

I usually recommend people NOT to push for the 1st spot, unless they have a really awesome funnel. Once you get to the 1st spot, very often you enter a bidding war with who was sitting there until now - these don't usually end well That's why it might be a better idea to sit on the 3rd spot and remain partially un-noticed, while pulling the profits.

Obviously, when you hit a really good campaign, that converts like a charm, you want to get all the traffic there is for the taking. In such case, you definitely want to go higher, even to the 1st spot. You just need to accept the fact that people will notice, your funnel will get ripped and pretty soon, someone will try to take you down anyways.

You can basically work in 2 ways on TJ -

A) try to stay under the radar : bid lower, use higher CAP or no cap at all, target the tier3 spots ...

B) or shoot straight for the top : bid high and target the top3 positions, go for the most competitive sites

As always, the best is to use some kind of a mix, based on how competitive the paticular sites/spots/GEOs are and adjust your strategy.

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Increasing bids to reach the top will increase the overall prices for everyone until no one can afford the traffic. Others do the same to keep volumes. Everyone pays more at the end, until it drops back, everyone decreases and prices are back to "normal" until the next wave. I think on the long run staying out of price wars will make more profit for you. I would substitute the volume drops from other, not so competitive spots.

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Pretty much so, yes. Bidding wars don't really benefit anyone, but the traffic source ... but sometimes they are inevitable

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Makes sense... Is there website/search tool where I can find which Network has a specific offer?

example, I manual spy and see the same offer but my Network doesnt offer them.

Thanks!

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There is offervault.com - try their search function. It's not perfect, but sometimes it works

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Thanks!

I have another question in regards to tracking!

I realised that TJ tracks by CPM. Since it's not cost per click, would it make sense to just create as many banners as possible for one campaign to A/B test?

I guess what I'm saying is if it was CPC, then more clicks equals more money I spend, however, if it's by impressions... I still have to pay a set amount due to the total pool of impression which the website generates in the day depending on how I bid. The total impressions is out of my control....

I hope that makes sense!

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This is not the correct way of thinking about it, bidding on CPC basis doesn't mean you will spend more than when using the CPM model.

First of all, your bid directly influences how many impressions you will get. Bid high and get higher %, bid low and get lower % of available impressions. You can also use impression capping. So the total impressions are indeed under your control.

What makes CPM bidding different from CPC bidding, is that your banner CTR doesn't matter in case of CPM. You will get the same amount of impressions whether you banners have 0% CTR or 5% CTR. As a result, all of your banner will get pretty much the same rotation.

Contrary to this, the amount of clicks that you will receive when using CPC bidding directly depends on the banner CTR, because the network wants to make the most money. So, since they charge per click, they will push banners with the highest CTR %. Low ctr banners will receive less clicks than high ctr banners. As a result, the system will favorite high ctr banners and the other ones will not get enough traffic so you won't be able to test them properly.

CPM bidding is definitely a better system when you plan to test a lot of banners. So your original assumption was correct, it's better to test many banners at once when bidding CPM, you just used the wrong argument to support it.

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