ReadPeak Feature Blog

Making Native Advertising a strategic part of performance marketing

ReadPeak Launched Dynamic RTB

24.01.2018 | 10:50:00 | Tomas Forsback

Get insight how to use dynamic RTB* to bid and buy smarter Native Advertisement.

The ReadPeak campaign creation tool gives the marketer options to choose a Fixed CPC campaign, or a RTB CPC campaign.

  • In Fixed CPC, the publisher promises a fixed price per click from their medias, and you can easily calculate the total amounts for clicks you will get with your campaign budget. Note: in Fixed Price, campaigns are not guaranteed. They still compete with other programmatic demand.

  • In RTB CPC, the marketer sets the bidding price per click and a campaign budget. The bid and budget can be changed at any time during campaign. Publishers set a CPM floor price*, that is the minimum price the publisher are willing to sell their inventory.

How to set up a campaign with RTB?

Setting up a RTB campaign is very easy. The main things to keep in mind is

  • Set a budget for your campaign that is either based on daily, weekly or lifetime period.
  • Set a bidding price for the campaign. This is the cost you want to pay per click.

You can also set media specific CPC bids and set a maximum budget spend per media. In this way, you can control price points on a media level, not only campaign level.

Good to know about ReadPeak RTB:

  1. You bid in CPC (Cost per click) but auction is done in e-CPM pricing. Your campaign e-CPM value depends on two things. Firstly, your bid price, secondly your campaign CTR*. The combination of those is converted into your CPM value.
  2. Your CPM value is determined by the best article variation CTR in your campaign. This means the more variations you create the better chance you have to win and the cheaper you can buy your clicks.
  3. Even though you win the auction with your best article variation, all your articles and variations will get views, except the ones that are below publisher set CPM floor price. Based on algorithms, the best performing variation get the most views and lower performing less views.
  4. ReadPeak RTB uses the second price auction method. This means that when you win a bid, you never pay the winning price, but you pay the second price plus one cent (0,01€). In this way, you know you never have to pay more than the actual market value.

Q&A How to optimize campaign for better price?

To win bids with a lower price, you need to get higher CTR* in your campaign.
To get higher CTR create more article variations in your campaigns. As mentioned, the best variation in your campaign converts into your CPM auction bid.

What if my campaign is winning no bids?
You can follow the campaign win ratio (how many % of your bid wins) in the campaign dashboard. If you win no bids, or a low percentage, there are two things you can do. Either increase your bid price (CPC) or get better CTR by adding more variations to your campaign.

Is there any limit for how low I can bid?
No, you can set the bid as low as you want, but your article variation CTRs determine whether you win bids or not.

How do I know if I’m winning bids?
Follow the win ratio percentage in the campaign dashboard.

Can I change the bid during an ongoing campaign?
Yes, you can change the bid any time from the dashboard or campaign media settings. Note that this will not change the price of clicks already tracked in your campaign.

Can I set media specific bids in the campaign?
Yes, you can change the bid on media level from the dashboard or campaign media settings. Note that the campaign level bid is applied in all medias that have no specific bid set.

Why RTB CPC campaign? The RTB gives marketers more options to optimize their campaign and have better control of CPC price. For example, you can set different CPC bids for different medias and you can optimize CTR to buy cheaper clicks.

*Terms

RTB (Real Time Bidding)
RTB auction method sells every impression to the highest CPM bidder in real time.

CPM floor price
CPM floor price is the lowest price a publisher is willing to sell inventory to advertisers.

CTR (Click-through rate)
CTR is the ratio of users who click on a specific link to the number of total users who view the native advertisement.

Win ratio
The win ratio is a ratio of the total number of winning bids to the number of total bids.

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