In digital advertising, every dollar counts. That’s why smartBid is here to help you stretch your budget further by reducing advertising costs during ad placements, especially for pop ads. It’s all about maximizing your investment while maintaining effective campaigns.
 

How smartBid Works?

The primary function of smartBid is to reduce the costs incurred by advertisers when displaying their ads. When the smartBid option is activated, the cost of an impression is adjusted downwards (if higher) to match the publisher’s site rate.

Let's do some calculations to illustrate how smartCPM is calculated. At Trafficshop ad network, we believe in transparency when it comes to our rates.

Key Pricing Factors

The impression price on a publisher's site will either align with the minimum price set by the publisher for their sites or reflect the cost in the displayed country as indicated in the marketing table, factoring in the Quality score. This is important to consider when you decide to buy traffic effectively.

Quality Score Impact on Cost

The Quality score plays a vital role in determining the final cost of impressions, particularly in pop and skimmed ads. Here’s how it influences the pricing:

• 0.5: Remnant traffic (-50%)
• 0.7: Low production traffic (-25%)
• 1.0: Normal traffic
• 1.2: Good traffic (+20%)
• 1.3: Premium traffic (+30%)

Example Calculation

Let’s break down a scenario to illustrate how smartBid operates:

1. Campaign Setup: An advertiser creates a campaign with a FINAL BID of 1.3 and a Quality score of Good.
2. Publisher’s Minimum Price: The ad is displayed on a publisher's site with a minimum impression price of 1.0.
3. Display Country Pricing: The relevant country (Singapore, SG) has a marketing price of 0.6.

Calculating the Impression Cost

To determine the cost of an impression in Singapore based on the current order:

1. Base Cost Calculation:
   • Cost = Marketing Price × Quality Score Adjustment
   • Cost = 0.6 × 1.2 (Good Quality Score) = 0.72
2. Comparison with Publisher’s Minimum Price:
   • Compare 0.72 with the publisher's minimum price of 1.0.
   • Since 0.72 is less than 1.0, we take the higher value: 1.0.
3. Final Cost Determination:
   • Now compare the FINAL BID of 1.3 with the adjusted impression cost of 1.0.
   • Since 1.3 is greater than 1.0, the final cost for the advertiser will be 1.0.

Additional Considerations

• Regular Monitoring: Advertisers should regularly review their campaigns and quality scores to ensure that they are maximizing their ad spend efficiency in the advertising network.
• Targeting Strategies: Combining smartBid with effective targeting strategies can further enhance campaign performance, especially when you buy traffic for popunder ads.
• Feedback Loop: Establishing a feedback loop to assess the performance of different campaigns can provide insights for future optimizations.

And to rephrase Darwin's theory of survival of the fittest: in network settings, it means survival of the smartest.

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