How Geobid’s Price Tool operates in a RTB (Real Time Bidding) campaign
Geobid’s Price Tool sets bids for you regarding Real Time Bidding (RTB) auctions. When you set up a campaign, you specify which key audience you wish to retarget and where you want them to be shown your ad (ie, Facebook, Instagram, or the rest of the internet). The Geobid Price Tool then searches for a key audience member (one who has previously visited your site and received a Geobid cookie), who is now on a different site where an ad is about to be loaded. An instantaneous auction occurs in which Geobid and others bid to place their ad in front of that audience member per the client’s campaign.
Actual Example: Bidder X sets a flat bid of $2 CPM (Cost Per One Thousand Impressions). Bidder Y, (Geobid), sets an initial bid to start at one cent ($.01) and rise in one cent increments until we win the auction, or up to a max of $3 CPM. Bidder Z sets a flat bid of $1 CPM. When the auction begins, X bids $2; Y (Geobid) offers $.01; and Z bids $1. Instantaneously, Y (Geobid) then offers $3.01 and immediately wins the auction. Our client’s ad is then shown to a previous visitor who is a key audience member of our client’s campaign.
A Geobid client’s campaign will always start at one cent ($.01) and go up by one cent until we win the auction or until our ceiling is hit. Therefore, if a max bid is set too low for a campaign (which is bidding for a prime media property) our client can miss out. This is why it is necessary for you to experiment with Geobid’s self-serve platform when setting campaign “caps” which work best for your marketing strategy.