Hello Readers!

Well, I’m back from Affiliate Summit West in Vegas and it was such a good conference!

Even Hulk Hogan came out to this one! I was fortunate enough to watch him cut a promo, talking smack about Hostgator LOL.

2014 is going to be a fantastic year for those who I had the chance to strategize with! Really looking forward to putting plans into action.

Anyway, back to business! I want to discuss the concept of increasing your CPM bid to cheapen your clicks. Basically, increasing your bid so that you deliver ahead of your competitors and decreasing the chance your ad has burned out. I want to give a BIG thank you to an affiliate who has agreed to allow me to display the data of one of their campaigns that clearly shows a minor increase in CPM for a much more profitable campaign.

Click here to see some freakin’ JUICY data!

Basically, the starting CPM for this campaign was $0.31 (bidding $0.01 more than the minimum for banners), got average 0.17% CTR with average CPC of $0.20ish and spend is ~$20/day.

He raised the CPM to $0.37 on Dec 19th and check out the RESULTS!! CTR is now average 0.30% with average CPC of $0.12 and spend is around ~$100/day. He’s now making a LOT more revenue/profit from this campaign for only a very minor increase in CPM bid. This is what happens when you increase your bid and deliver ahead of a large chunk of people.

Some observations:

- Why did he choose $0.37? He wanted to deliver ahead of the people who bid $0.35 (and the people using the 1 penny trick). MOST advertisers on POF will bid in nice, clean numbers… so usually in a multiple of $0.05. I suggested he test out $0.53 next. Why? Because the minimum bid for 3 small ads is 0.16, multiply that by 3 and you get a 0.48.. but then you’ll want to deliver ahead of the 0.51 guys too. The most popular bids for banners is always 0.30, 0.40, 0.50, 0.60.. etc. With diminishing returns as each level has less and less people bidding there. Make sense? BID SMART PEOPLE.

- This ad’s been running for a while now.. Notice any burnout? Nope. The stats were pretty stable since Oct 2013. There’s only 1 ad in the campaign too (running) so a good ad is a good ad! This will die one day but it’s held up for months now but so far, goes against everything logic would dictate LOL.

- The same idea would apply to the small ads. Only thing you’d have to do is duplicate your campaigns and ensure your bids all add up to something that would exceed a popular banner bid.

So, if you haven’t tested your bids in a while, it’s a good time now! I won’t be answering any questions about this campaign as I feel like it was already a very generous share. So best of luck and happy tweaking!

Ben

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