How to bid in an auction?
Retargeting Base display advertising is sold in auction. To get the best space available and thus get better performance from your campaign, you need to know how to make competitive bids.
Supply and Demand
When you bid for space at an auction, you’re competing with other advertisers who want the same space for their campaigns.
Let’s say you’re looking to target women. The more people there are trying to reach this audience, the higher the price is likely to go – it’s basic supply and demand. Since ad space will ultimately go to the advertisers that pay the publisher the most, it’s important to bid competitively.
Now let’s say you refine your target a bit, and you decide to target moms – still a broad audience, but significantly smaller than women. You’re likely to need a higher bid. With every additional layer of targeting you add, the more specific the inventory will be and, again, the higher you’ll have to bid.
How much should you bid?
The higher you set your bid, the more competitive your campaign will be, giving your campaign access to the best performing inventory. You should consider increasing your bid to maximize reach and access to the best performing and most relevant impressions for your campaign.
If your bid is too low, your campaign may have limited or no access to your desired inventory – particularly if your campaign is highly targeted. Even if your campaign is receiving some volume, your campaign could be limited to only running on inventory that has lower performance or higher frequency than desired, leading to poor performance and unmet objectives.
Next Lesson: Different types of pricing