Bid Strategies In Display 038 Video 360

1. Minimize CPC/Minimize CPA
2. Meet or beat goal of ____ CPC/CPA
3. Optimize for viewable CPM bid
4. Fixed bid

Next to theFixed Bid, where you set a fixed CPM bidautomated bid settingsavailable (options 1 to 3). These allow the system to automatically and dynamically change the bid for a line item whenever an individual impression is likely to perform well.

This blog post shows how the individual bid settings differ and what needs to be taken into account.

Automated bidding strategies in DV360

While with Fixed Bid you submit a specific bid, which the system can invest in order to achieve any single impression for a line item, Automated Bidding in DV360 takes this into accountAlgorithms and machine learningto andautomatically calculates the correct bid for each relevant impression.

Bids for a line item are thusdynamicchanged and adjusted based on the likelihood of a single impression achieving good performance (for example, a click or a conversion).

An automated bid strategy can be activated for each line item immediately after it is created in Settings. Performance data from previous campaigns does not necessarily have to be available – the system continuously learns during the campaign and optimizes it. However, the following applies: the more data, the better the algorithm.

Types of automated bidding strategies

Depending on the strategy, there are different optionsAlgorithm approachescan be distinguished:

• Maximize the impact of the brand = Favor Spend
• Maximize performance = favorite goal

Maximize the impact of the brand = Favor Spend

“While spending the entire budget, maximize the quality of impressions so that DV360 prioritizes purchasing the best impressions to increase product awareness.”

With Favor Spend, the system automatically optimizes for the best possible performance for the entire available campaign budget. “Minimize CPC/Minimize CPA” gives the DV360 the option tofor the best possible CPC or CPA automatic adjustmentsin relation to the budget used during bidding.

When should Favor Spend be used?

This approach can be used from day one – but the system requires data and time to achieve good results (at least 100 events such as clicks/conversions in a 30-day time frame). Before the algorithm can optimize, you should ideally let the campaign run for at least 7 days without making any changes.

In general, it is recommended to use this approach over the favor goal approach, especially if youno or few empirical valuesand therefore has no exact idea of ​​the CPM/CPC that the respective placements are worth.

Maximize performance = favorite goal

“When spending the entire budget at the same time, the CPC or CPA should be minimized so that the remaining amount until the entire budget is exhausted achieves the best possible performance in terms of CPC or CPA.”

With Favor Goal you focus on a very specific goal, e.g. CPM of € 4.50 and thatAlgorithm tries to achieve the set goal exactly. “Meet or beat goal of ____ CPC/CPA” enables the bidding to be automatically adjusted taking the specific performance goal into account.

Requirementthat’s what it isGoal realisticis – otherwise it may happen that you cannot reach relevant people, for example, or that you have problems with fully spending the available budget.

This model also requires data in order to carry out automated optimizations. You should therefore give the system time (at least 7 days) and, especially at the beginning, not make any changes to the campaign.

When should Favor Goal be used?

This approach should only be used if yourealistic ideas about his goal(e.g. certain CPM/CPC) and it is less important that the available budget is fully spent.

TIP:The set target can be changed – but under no circumstances should it deviate by more than 10-20% from the current value, otherwise the system may stop delivery. We therefore recommend reducing the value gradually and only after a certain campaign period.

You should also pay attention to the fact that the LineItem may not be able to output the desired budget if the CPC / CPA is set as the target.

Favor Goal or Favor Spend?

Optimize for viewable CPM bid

Another option that can be chosen as a bidding strategy is “Optimize for viewable CPM bid”. This approach enables automated adjustment of the CPM bid based on the Active View prediction model. DV360 optimizes CPM bids using Active View data based on the likelihood of an impression being viewable. (Active View is a Google technology that measures whether an impression was visible and for how long.)

Example: If the CPM target is set to €2 and an impression is 40% within the probability range of the Active View prediction model, DV360 will automatically provide a CPM of €0.80 (40% of €2)

Fixed Bid

In addition to these automated bid strategies, “Fixed Bid” can also be used for every campaign. “Fixed bid” takes away the ability of the DV360 to automatically adjust the bid process and offers the fixed CPM.

The bid amount is stated per thousand impressions (cost per 1000 impressions – CPM).

So if a CPM bid of €10 is set, the maximum bid per single impression would be €0.01 (€10 ÷ 1,000).

Difference between fixed bid and automated bid

If you have a clear idea of ​​how much a bid is worth, you can use fixed bidding. DV360 uses the submitted bid to determine the maximum amount that can be invested to achieve any single impression for a line item.

With a fixed bid, the amount of the bid determines which impressions can be purchased. In some cases, using fixed CPM bids prevents the entire budget from being spent, for example because the bid is too low. You should therefore regularly check the campaign and increase the bid if necessary. This way you can also prevent valuable impressions from being lost. Generally, the algorithm always helps you to get the impressions at the lowest possible price.

However, it is often easier to use automatic bidding instead of a fixed CPM bid, especially if you have no or no precise idea of ​​a realistic fixed bid. DV360 can then change the bid for a line item dynamically and automatically whenever it is likely that a single impression will perform well.

The most important rules for automated bidding

• If you are forFavorite goaldecides, then you shouldVERY clear ideas about his target value(e.g. CPM or CPC)  have. 20 to 25% above your target can be used as a guideline when setting the target value for a line item.
• If youno concrete ideasof your target value, then you should go for itFavor spend algorithmdecide.
• The more data, the better– if there are only a few overarching conversion goals, then you shouldMicro conversionsbe measured. This allows more data to be generated, which can then be used by the algorithm for optimizations.
• Changes or optimizationsin the settings (especially for automated bidding).only after a certain term&only if necessarycan be carried out – please note: Bids and targets never change by more than +/-20% & implement a few changes at the same time and not with a time lag. Ideally, you document your changes so that you can later understand what the individual adaptations achieved. Alternatively, you can also look in the -Change Log- under the properties to see who made which changes and when.
• DemYou should give the algorithm as much time as possibleto learn from the data and optimize the display.

Do you still have questions?

We would be happy to support you in optimizing your campaigns. Register atkontakt@e-dialog.group