CPM Bid Effects

CPM Bid Effects – Preview

I’ve noticed on Plenty of Fish that my impression numbers do not change much, regardless of whether I bid the minimum CPM or a much higher CPM. So, I’ve decided to do a public case study on Plenty of Fish so we can all see if it matters and how much. The only thing I will be split testing is my CPM bid. I will bid 15c, 25c, 35c and 45c.

With some affiliates experiencing problems getting blacklisted from offers they promote on Plenty of Fish, I’ve decided to promote a dating offer where the quality isn’t expected to be top notch in the first place. With this in mind, I’ve picked the Singlesnet offer on Profit Kings Media that accepts traffic from users that are 21 – 24 years of age.

I will only be using one ad copy. The ad title will be: Single Available Women and the description will be: There are 986 sexy, single women online in {state:default}. Sign up and meet them today! The {state:default} will be replaced by the users state they registered in, so it will look more customized for them.

I will be targeting males in the United States that are 21 – 24 and are single, divorced, widowed or separated.

I’ve picked 6 random images from Justin Dupre’s image pack that he released on his blog and that you can download in the creatives section. The ones I’ve chosen are below.

CPM Bid Effects – Results

Campaign with 15c bids
Campaign with 25c bids
Impressions 39,728 Impressions 65,592
Clicks 41 Clicks 57
Avg. CTR 0.103% Avg. CTR 0.087%
Total Costs $5.96 Total Costs $16.40
Leads 4 Leads 6
Conv. Ratio 9.76% Conv. Ratio 10.17%
Revenue $11.60 Revenue $17.40
Profit/Loss $5.64 Profit/Loss $1.00
Campaign with 35c bids
Campaign with 45c bids
Impressions 278,539 Impressions* 447,061
Clicks 283 Clicks 413
Avg. CTR 0.102% Avg. CTR 0.092%
Total Costs $97.49 Total Costs $201.18
Leads 21 Leads 22
Conv. Ratio 7.98% Conv. Ratio 5.58%
Revenue $60.90 Revenue $63.80
Profit/Loss ($36.59) Profit/Loss ($137.38)

*This campaign hit its $50 daily spending limit everyday it was active. If this limit would’ve been higher I would’ve received more impressions.

I was pleasantly relieved to see that my assessment of the POF self-serve advertising platform was wrong. They absolutely do favor the higher bids and will provide more impressions to higher bids. Ben from POF noticed my case study and he provided some valuable insight to their platform. His quote is below.

Your CPM will have an affect on your CTR because we serve ads based on CPM price. The highest bids get their ads shown to the user first, followed by the next highest and so forth. So if your bid is too low, then the impressions you receive will be from people who have already seen 20 ads (thus the likelihood of clicking and converting are low).

Also, your CPM will have an affect on your traffic flow because the highest bids get their ad quota filled first, followed by the next highest and so forth. So if your bid is too low, you might not get the priority to start getting a lot of traffic to your site. This explains why CPM is so critical in highly targeted campaigns.

After reading the quote from Ben above and assessing my stats from the 15c and 25c campaigns, I’m wondering if I could use the Session Depth targeting criteria to my advantage. I realize that my stats on those two campaigns aren’t statistically significant, but it got me thinking and made me realize something. When I first login to Facebook, I’ll be checking messages, notifications and status updates first thing and won’t pay attention to the ads at first. Then as I start just dicking around on Facebook, I notice myself paying more attention to the ads.

Disclaimer: this POF Case Study has been copied and pasted from my blog at RileyPool.com where I originally did this POF case study. This case study was done during April 2010.

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