One penny, such an insignificant sum. No one suspects the penny. What could a pathetic penny ever do?
I’m sure most of you have spent some dimes on these traffic sources: Facebook Ads, Plenty of Fish, Myspace Ads, Media Buys and PPV.
But how many of you start your bidding on increments of 5? E.g $0.20, $0.45, $1.50.
I’m guessing the majority of you. That means the minority of you are sneaking past the herd of affiliate marketing sheep with your creative bidding strategies.
Let’s say for example, on Plenty of Fish Ads it is recommended you start bidding at 0.35 CPM for UK traffic. This is my estimation on how bidders would breakdown for UK traffic:
There would be a small percent of people getting minimum volume scraping the barrel. Then the masses (of sheep) would be bidding at 0.35 CPM. There would be a few loose cowboys (gratuitously high bidders), and the rare few with kick ass campaigns bidding at $0.40 CPM or higher. Then a smart group of people bidding in between at $0.36 CPM – $0.39 CPM.
By bidding an extra penny or two you are getting priority over 75% of people bidding $0.35 CPM without losing too much on your ROI. Small things like this help immensely in the big picture.
It is also important to note that after you are done testing a campaign, you should optimize your bid price. Don’t get lazy. Keep dropping your bid price down a penny at a time until you see a loss in volume. Think it’s a waste of time?
Lets say you were testing a MyAds campaign with a 0.20 CPC. If you managed to drop your bid to 0.17 CPC and get similar volume you would save:
- $15 if you spent $100.
- $150 if you spent $1000.
- $1500 if you spent $10,000.
This is very applicable for PPV (a.k.a bidding war heaven). After you have defeated a foe and conquered a fruitful target or two, be sure to pull your troops back (lower your bids back down as much as possible while holding your top bid spot).
A penny saved is a penny made.
Now be honest are you one of the sheep, cowboy, or part of the smart crew?