Dynamic Bid CPM Bid Tactic
- 24 Jul 2024
- 4 Minutes to read
- DarkLight
Dynamic Bid CPM Bid Tactic
- Updated on 24 Jul 2024
- 4 Minutes to read
- DarkLight
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The Dynamic Bid CPM tactic leverages the use of machine learning to determine the optimal price to bid for an impression.
Over the duration of a flight, Samsung DSP will optimize on average price, or eCPM - within the user-defined min and max CPM - while keeping delivery against the campaign budget on track.
The tactic eliminates the need for creating multiple flights to set separate bid CPM values for different user groups.
Settings
- In the Flight Bid Tactic, select Dynamic Bid - CPM.
- In the Budget field, you can either leave it as is or change the value. By default, Samsung DSP retrieves the value you added in the Spend Objective field from the campaign form. You can select in the drop-down list a pacing mode.
- In the Priority Group (For Shared (Prioritized Impressions) campaigns), enter a number to indicate the importance you place on this flight versus the others. For instance, if you have three flights on a campaign, you might want that this one precedes the others. In this case, you would enter 1 (highest priority) for this one and 2 and 3 for the rest. The number you enter here influences how Samsung DSP will convey bid traffic to this flight -> lower priority flights will leave most impressions to higher priority flights.
- In the Min CPM field, we recommend to either leave the Min CPM field empty or to enter the following value to ensure the optimal performance of the machine learning model:
- For Connected TV (CTV) and Online Video (OLV): below $10.
- For Display: below $1.
In this field, you specify the lowest average CPM ("eCPM" (Effective Cost Per Mille)) you would like to maintain over the course of the flight. While Samsung DSP might bid slightly lower than this amount on an individual ad impression, by the end of the flight, the eCPM will be at or above this amount.
If you leave this field empty, Samsung DSP will bid to maintain the minimum possible eCPM while keeping delivery on track.
- In the Max CPM, you specify the maximum bid amount for 1000 impressions, regardless of the prediction of the machine learning algorithm. More specifically, this is the maximum average CPM ("eCPM") Samsung DSP should maintain over the course of the flight.
Samsung DSP may bid slightly higher than this amount on an individual ad impression, but the eCPM will end at or below this amount by the flight end date.
Additional Limits
Ticking the checkboxes in the Stop when section allows you to set limits at the flight level. Once any of these thresholds is reached, the flight will stop delivering.
- Impressions reach: You can set an impressions' goal for the flight, and it will affect the pacing, as well as consider the pacing on the budget. You can select a different pacing mode for impressions.
- Clicks reach: You can set a clicks' goal for the flight, and it will affect the pacing, as well as consider the pacing on the budget. You can select a different pacing mode for clicks.
- Conversions reach: You can set a conversion reach stop condition. This is a stopping condition only. It will not affect the pacing.
- Advertiser spend reach: You can set an advertiser spend stop condition. This is a stopping condition only. It will not affect the pacing.
Apply correct inventory
Samsung DSP displays this information panel to ensure that you apply the Dynamic Bid CPM tactic to the correct inventory.
| Marketplace Tab | Creatives Tab |
|---|---|
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Bidding on direct deals
This section describes how Samsung DSP determines the best bidding amount to win auctions relying on Floor Price. The Floor Price is the lowest price from which the publisher agrees to sell their inventory. Assuming that the Floor Price is within the range of the amount you set in the Min CPM and Max CPM fields:
- If the price generated from the machine learning is above the Floor Price, Samsung DSP will bid using the price generated by the Dynamic Bid - CPM tactic.
- If the price generated from the machine learning is lower than the Floor Price, and the amount you set in the Max CPM field is higher or equal to the Floor Price, Samsung DSP will bid using the amount set for the Floor Price.
- If the Floor Price is higher than both the amount you set in the Max CPM field and the price generated from the machine learning, Samsung DSP won’t bid.
- For Direct Deals with a Fixed auction type, no price will be generated from the machine learning. Samsung DSP will bid using the amount set for the Floor Price.
If a combination of supported and unsupported inventory is included, Samsung DSP will return an optimized bid price for the supported inventory while ignoring unsupported inventory for flights configured with the Dynamic CPM bid tactic.
Validate the settings
- In the bottom right-hand corner, click on Save.
If the flight fails to save, make sure that:
- The Min CPM (if specified) is lower than the Max CPM.
- The correct inventory is being targeted. See Applying correct inventory for more information.
Optimize delivery
As the values you set in the Min CPM and Max CPM fields constrain the bid amounts, make sure that the eCPM value is not far from the Max CPM value. If this value is very close to Max CPM, then check the Campaign Drift. See the Drifts section in Campaign Listing for more information.
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