Bid Management / Bid Optimization
  • 13 Feb 2023
  • 1 Minute to read
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Bid Management / Bid Optimization

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Article summary

What is the definition of Bid Management?

Every business wants to get the best return on their advertising investments. This is why bid management, the process of optimizing bids for ad campaigns, is so important.

Bid management, also known as bid optimization, is the process of setting and managing bids for online advertising campaigns. Bid management helps businesses get the most out of their ad budget by ensuring that their bids are competitive and targeted to the right audience.

When it comes to bid management, it’s important to understand that there is no one-size-fits-all approach. Different campaigns have different goals and objectives, so it’s important to create a customized bid strategy for each campaign.

Additionally, automation of bid management (or bid automation) has become possible with multiple tools such as Bishake, Bidalgo, Algolift etc. With these tools, you can define rules to manage campaigns at scale across channels. Rules can be set up on a campaign, country, and site ID (sub source) level.

These are examples of rules you can define.

  • If Day-7 LTV is bigger than X, increase bid by Y%
  • If spend in the last 14 days is bigger than X, decrease bid by Y%
  • Stop campaign X if Day-7 ROAS is smaller than Y

Why is Bid Management important?

Bid management helps businesses get the most out of their ad budget. It ensures that your bids are competitive and targeted to the right audience, which can help you get more clicks and conversions from your ad campaigns.

Bid management can also help you save resources by removing your user-acquisition (UA) team’s burden of performing manual tasks, and enable them to focus on building strategies.

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