How Does Bidding Work On Promote

Overview:
In this article, you will learn how bidding works on Promote.

What is bidding?
Advertisers set their bid amounts in terms of what they are willing to pay for every 1000 impressions.

• CPM (Cost Per Mille): Advertisers pay for every 1,000 impressions of their ad.
• Auction System:
  • Ads are placed in an auction format where multiple advertisers compete for the same audience.

What is the maximum bid on Promote?
Currently the maximum bid on promote is $100

How much will I be charged if I have the winning bid amount?
When you place a bid, you’re only charged $1 more than the next highest bid.  This ensures you pay just enough to outbid others without overpaying.  

Example: Advertising with a $5 Budget and $100 CPM Bid

Scenario: You’re running a digital ad campaign for your track with a total budget of $5. You decide to set a maximum bid amount of $100 for every 1,000 impressions (CPM).

Key Components:

• Bid Amount: $100 per 1,000 impressions (this is the maximum amount you’re willing to pay for 1,000 views of your ad).
• Total Budget: $5 (the maximum amount you are willing to spend for the entire campaign).

Cost Breakdown:

1. Impressions:
   • Since you’re bidding $100 for 1,000 impressions, your cost per impression is:
     • Cost per impression=100/1000=$0.10
   • With a $5 budget, you can calculate how many impressions you can afford:
     • Total Impressions = Budget/Cost per impression = 5/0.10 = 50 impressions
2. Potential Reach:
   • With your $5 budget at a $100 CPM, you can expect to reach a total of 50 impressions before your budget runs out.

Conclusion:
With a $100 CPM and a $5 budget, you can achieve 50 impressions of your ad.

To increase visibility, you may want to lower your CPM bid, allowing for more impressions within the budget, or consider increasing the budget if you want to reach a wider audience. Adjusting these factors will help you achieve better results for your advertising campaign.