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Bidding strategies for Real Time Bidding (RTB) campaigns

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A presentation of possible bidding strategies for RTB campaigns considering the customer journey.

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Bidding strategies for Real Time Bidding (RTB) campaigns

  1. 1. BIDDING STRATEGIES FOR REAL TIME BIDDING CAMPAIGNS A CUSTOMER JOURNEY ORIENTED APPROACH BY LAURENT MÜLLENDER, 2015
  2. 2. INTRODUCTION If you run programmatic campaigns or classical retargeting on your first party data, you can adopt several approaches to define your bid strategy. One approach is to focus on the customer journey, i.e. the distance from the conversion point. The distance can be measured by: The last entry channel (some channels such a generic SEO are rather at the beginning of a journey. Some rather at the end e.g. SEA function campaigns) Time (Day X of Y days typical conversion life cycle) Frequency (X visit out of Y visits needed to convert) … Which model suits your business will depend on the structure of your customer journey and the selected attribution model. You do not need to know the exact customer journey(s) to start. A partial picture is sometimes enough to start and see improvements. It‘s better than no picture at all. Be agile.
  3. 3. BID STRATEGY: DECREASING VALUE In this model, „the willingness to pay“, decreases the closer you are to the conversion point in the customer journey. It means that you think that the closer you are to the conversion point, the higher the probability is that the lead will convert (through other channels) and thus you decrease your RTB bids. RTB/Retargeting is not considered as a closing channel here but as a strong assist channel. It‘s an acquisition view. It can also reflect an intention not to overspend by reducing the amount of money you spend for total ad contacts per lead. This model suits well with first click attribution models which put a higher value on the assisting touch points. Bid Time Conversion
  4. 4. BID STRATEGY: INCREASING VALUE Here, „the willingness to pay“, increases the closer you are to the conversion point in the customer journey. You assume that the closer you get to the conversion point, the „hotter“ the lead is and thus you are willing to pay more. This is the classical Retargeting approach where it‘s used as a closing channel. This model suits well with last click attribution models where value is put on the closing touch points. Time Conversion Bid
  5. 5. BID STRATEGY: EQUAL VALUE With this strategy, „the willingness to pay“ remains equal. It is not unusual to see that in this case, there‘s just little discrimination within leads and segments. E.g. all leads are tagged, no matter what actions they did. The intention here is often gaining reach rather than conversions: Be present throughout the web and present your products to a large targeted audience. Equal bid is not necessarily combined with poor targeting or poor results though. It is just not taking the customer journey into account. Time Conversion Bid
  6. 6. AUTHOR Laurent Müllender Performance-driven product management and online marketing www.muellender.biz Laurent.muellender@gmail.com
  7. 7. AUTHOR Laurent Müllender Performance-driven product management and online marketing www.muellender.biz Laurent.muellender@gmail.com

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