Hello Dear Author Friend!

I hope you have already gone through my previous posts on BookBub Ads, where I talked about them in detail. If you haven’t read them, please click on the below links to first learn what Bookbub ads are:

• Click here to learn what is BookBub and BookBub Ads.
• Click here to learn the #9 steps guided formula for BookBub Ads.

Once you understand what BookBub Ads is, let’s dive deeper and learn how the BookBub auction model works.

First, let me give a brief about the auction model.

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In Short: How The BookBub Ads Auction Model Works

1. The cost of running ads on BookBub depends on your campaign details and the competition from other advertisers in the auction.
2. You set your own budget, which is the total amount you want to spend on the campaign.
3. You also place a bid, which is the maximum rate you’re willing to pay to reach your target audience.
4. There are two bidding options: cost-per-thousand impressions (CPM) or cost-per-click (CPC).
5. When a reader opens an email or visits our website, an auction determines which ad to display based on the highest bid.
6. If your ad wins the auction, you pay the rate of the second-highest bid for that reader.
7. The cost for each impression or click depends on factors like your targeting choices and bids from other advertisers.
8. However, you will never pay more than the maximum CPM or CPC you set when creating your campaign.
9. You won’t exceed your overall budget either, so the total amount you spend on BookBub Ads is entirely within your control.

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Let’s Deep Dive With a Practical Example

If you’re already familiar with BookBub and Chirp’s editorially curated deals, you know that the featured deal pricing is pretty straightforward. Advertisers pay a fixed price based on the category and discount of the promotion they want to run.

However, when it comes to BookBub Ads Auction, things work a bit differently. The pricing for these ads is determined through a real-time auction.

What does that mean?

Well, it means that the cost of running an ad can vary because it depends on other advertisers who are also bidding for clicks or impressions from the same audience.

BookBub Ads auction model actually has some great benefits. It allows advertisers like you to run efficient targeted campaigns that can provide a positive return on investment. You have more control over your ad spend and can adjust your bids accordingly.

Now, I understand that if you’re new to advertising or used to other platforms, this auction model might initially seem a bit confusing. Unlike curated deals, where the pricing is fixed, BookBub Ads Auction offers a dynamic pricing system. But don’t worry; once you get the hang of it, you’ll see how it can effectively reach your desired audience.

So, keep in mind that the pricing for BookBub Ads is determined through an auction where advertisers compete for clicks and impressions. It’s a flexible and targeted approach that can help you run successful campaigns.

How Do BookBub Ads Auction Work?

It works on an auction system, which means that your ads compete with other advertisers’ ads to be shown to your target audience.

When you create an ad campaign on BookBub Ads Auction, you get to choose who you want to reach with your ads. This is your target audience. You also set the maximum amount that you are willing to pay for each click or impression, which is your bid.

Your ads then enter into a live auction every time a reader opens an email or visits a website page.

During this auction, BookBub’s system looks at various factors, such as your bid, the quality of your ad, and the relevance to the reader, to determine which ad will be shown to the reader. The winning ad is the one that has the highest bid and meets the other criteria.

It’s important to note that the BookBub Ads Auction happens in real-time, meaning it occurs instantly when a reader interacts with BookBub content. This ensures that the ads shown to readers are relevant and competitive. The auction system helps advertisers like you run effective campaigns that reach the right audience.

How does BookBub decide when and where to display my ads to readers?

BookBub Ads are displayed in specific areas within BookBub’s daily emails, usually located at the bottom after the featured titles. These ad spots are competed for in a live auction, where ads with the highest bids have the opportunity to reach the intended readers when they open an email. Each time your ad is shown to a reader, it counts as one impression.

While ads can also be served on the BookBub website, the majority of impressions occur within the emails. This means that, unlike other ad platforms that display ads when users visit a website, BookBub’s ads are served in a more variable manner.

The timing of the emails and the specific emails that are sent play a role in determining when and to whom the ads are shown.

For instance, if your ad targets fans of an author who is releasing a new book, there will be more opportunities to reach those fans when BookBub sends out the New Release Alert for that particular book. This way, your ad has a greater chance of being seen by the readers who are most likely to be interested in your book.

BookBub’s ad placement is designed to maximize visibility and engagement among the readers in your target audience. By understanding how the auction-based system works and strategically bidding for ad placements, you can increase the chances of reaching your desired readers at the right time and in the right context.

Note: BookBub has made adjustments to its auction system to accommodate Apple Mail’s privacy protections. This is done to ensure that ads are not displayed in emails that are automatically opened by Apple Mail, as opposed to being opened by actual readers. By implementing these measures, BookBub aims to maintain the integrity and effectiveness of ad placements, reaching real readers who actively engage with the content.

So, let’s dive into how the BookBub Ads Auction system works and how it decides which ads will be shown to readers.

BookBub Ads Auction considers six key elements in your ad campaign, but only the last four elements impact when and to whom your ad will be displayed.

#1) The first element is your ad creative, which refers to how your ad looks. It’s important to create an eye-catching and engaging ad that captures the attention of readers.

#2) The second element is the click-through links. These determine where readers will be taken when they click on your ad. You can choose the destination, such as a book’s sales page or your author’s website, to direct readers to the desired location.

#3) The third element is the audience. This is where you define who you want your ad to reach. You can specify certain criteria, such as genre preferences or specific author interests, to target readers who are more likely to be interested in your book.

#4) Next is the schedule. You can decide when and for how long your ad will be active. This allows you to strategically plan the timing of your campaign and ensure it aligns with important book releases or promotional periods.

#5) The budget is another crucial element. It determines the total amount you are willing to spend on your ad campaign. Setting a budget helps you manage your advertising expenses effectively.

#6) Finally, you have the bid. This is the maximum rate you are willing to pay to reach readers in your target audience. The auction system considers your bid along with the other campaign elements and competing advertisers’ bids to determine which ads will win impressions.

By optimizing these elements, you can increase the chances of your ad reaching the right readers at the right time. It’s important to carefully consider each aspect of your campaign to maximize its effectiveness and ensure that your book gets the exposure it deserves.

Ad Creative & Click-through Links

When it comes to your BookBub Ads Auction, the creative design of your ad and the click-through links play an important role in capturing the attention and interest of readers who see your ad impressions. However, these elements don’t directly influence whether or not your campaign will be shown to readers. Instead, there are four other key elements that have an impact on the auction system.

The Schedule & Budget

In BookBub Ads Auction, the schedule and budget are important factors that determine how long your ad will be active and how it competes for impressions. Let’s break it down in simpler terms.

The schedule refers to the specific timeframe during which your ad campaign will run. Depending on your preferences, you can choose to have your ad continuously active with a daily budget or set fixed dates for your campaign. If you opt for a continuous campaign with a daily budget, your ad will stop appearing once you reach your budget limit for the day. However, it will resume serving ads the next day. On the other hand, if you have a campaign with fixed dates, your ad will stop serving if you reach your total budget before the end date.

Now, let’s talk about the budget. Your budget determines the total amount of money you are willing to spend on your ad campaign. When you set your budget, BookBub Ads Auction will automatically turn off your campaign once you reach that budget limit. This means that if you have a higher budget, your ad can run for a longer period of time, giving you more opportunities to compete for and win impressions.

It’s important to note that while the schedule and budget impact how long your ad will run, they do not affect the status of your ad in the auction. The auction system is independent of these factors and determines the winning ad based on bids and other criteria. So, even if you have a higher budget or a longer campaign, it doesn’t guarantee a higher position in the auction. The auction evaluates ads based on various factors, and the winning ad is chosen accordingly.

By understanding how the schedule and budget work in BookBub Ads Auction, you can make informed decisions about your ad campaign’s duration and financial aspects. Finding the right balance between your budget and the desired duration is crucial to effectively reaching your target audience and maximizing your ad’s chances of winning impressions.

The Bid & Audience

In BookBub Ads Auction, your bid plays a crucial role in determining whether your ad will be shown to readers. Let’s break it down in simpler terms.

When it comes to bidding on BookBub Ads Auction, you have two options: cost-per-thousand impressions (CPM) or cost-per-click (CPC). Your bid is the maximum rate you’re willing to pay to reach readers in your target audience. This bid determines how much weight your ad holds in the auction and influences its chances of being displayed to readers.

Now, let’s talk about your audience targeting. Your targeting settings determine the group of readers you’ll be competing for in the auction. This means that you’ll be competing for the attention of readers who fall within your specified audience criteria. It’s important to note that you’ll also be competing against other advertisers who are targeting the same readers.

When a reader opens an email or visits a page on BookBub.com, the BookBub Ads Auction system comes into play. It identifies all the ads that are targeting that specific reader and compares their bids. The ad with the highest bid will be displayed to the reader. In the event that two campaigns have the exact same bid, the winner is chosen randomly.

So, in order to increase your chances of getting your ad shown to readers, it’s essential to set a competitive bid. A higher bid increases the likelihood of your ad winning the auction and being displayed to your target audience. However, it’s important to strike a balance between a competitive bid and your overall advertising budget.

Understanding how bidding works in BookBub Ads Auction helps you make informed decisions about your bid strategy. By setting an appropriate bid and targeting the right audience, you can enhance your ad’s visibility and reach the readers who are most likely to engage with your book or product.

Why CPM is Advised Over CPC?

Currently, if you choose to bid using CPC (cost-per-click), your ads will be eligible to appear only on the BookBub website. On the other hand, if you opt for CPM (cost-per-thousand impressions) bidding, your ads have the potential to be shown in our emails as well as on the website.

Now, you might be wondering which strategy is more effective. It’s important to note that BookBub email ads tend to be more impactful and reach a larger audience compared to website ads. This is because emails have a higher engagement rate and are more likely to capture the attention of readers. Therefore, if you want your ads to have a wider reach and higher chances of being seen, it is advised to use the CPM bidding strategy.

By choosing CPM, your ads will not only be eligible for placement in emails but also have the potential to appear on the BookBub website. This gives you the advantage of reaching readers through both channels, maximizing your ad’s exposure.

Understanding With An Example

Enough of the theory, right? I, too, hate too much text and theories! An example talks 1000 times better than the plain theory 🙂

So, here you go!

Imagine we have three different ad campaigns on BookBub Ads Auction, and all of them are trying to reach the same group of readers. Now, you have the power to choose who exactly you want to target with your ad. You can select specific regions, preferences for online retailers, categories of interest, and even specific authors that your target readers like.

Now, let’s say there’s a reader who matches the criteria of your target audience. When she opens her BookBub Featured Deal email, a little competition takes place behind the scenes. This is where the auction comes into play. The auction looks at all the ads that are trying to reach this particular reader and compares their bids.

In our scenario, Ad #3 turns out to have the highest bid among all the competing ads. So, Ad #3 wins the auction and gets displayed as the ad that this reader sees at the bottom of her email. It’s important to note that Ad #3 will continue to be the winning ad for other readers in the same target audience as long as it still has a budget left to spend.

Let me explain what happens when an ad campaign runs out of budget.

In our example, Ad #3 was the winning ad for a while because it had the highest bid and enough budget to keep competing in the auction. But there comes a point when Ad #3’s budget is all spent, and it can no longer participate in the competition.

So, when the next reader from the target audience opens their BookBub email, a new round of the auction begins. This time, Ad #1 steps up as the highest bidder among the remaining ads. As a result, Ad #1 wins the impression and becomes the ad that this reader sees at the bottom of their email.

The BookBub Ads Auction is a dynamic process that keeps changing based on the bids and budgets of the ads. When one ad’s budget is depleted, it opens up an opportunity for other ads to take the spotlight and win impressions. It’s like a continuous cycle where different ads get their chance to be shown to readers in the target audience, depending on their bidding and budget status.

So, if you’re running an ad campaign on BookBub, managing your budget wisely is important. Once your budget runs out, your ad won’t be able to compete in the auction anymore. Keep an eye on your budget and make sure to allocate enough funds to stay in the game and increase your chances of winning impressions from your desired readers.

An Important Aspect About How BookBub Manages Ad Campaigns to Provide a Better Experience for Their Readers

I want to share an important note about how BookBub Ads Auction manages ad campaigns to provide a better experience for readers. BookBub understands that seeing the same ad repeatedly can get a bit tiresome, especially when readers receive multiple emails from BookBub in a single day. To avoid this, BookBub Ads Auction has a system in place that ensures readers don’t see the same ad campaign too frequently.

Let’s imagine we have two readers: reader #1 and reader #2. Now, reader #1 opens their BookBub email and sees Ad #1, which was the highest bidder in the auction. But what happens if reader #2 opens their email shortly after?

In this case, BookBub wants to give reader #2 a fresh experience and not show them the same ad they just saw a few days ago. So, even if Ad #1 was the highest bidder, it won’t be shown to reader #2. Instead, the next highest bidding ad, which is Ad #2, will win the impression for reader #2!

This rotation of ads ensures that readers have a variety of ad campaigns to engage with, making their experience more enjoyable and preventing ad fatigue. It gives other advertisers an opportunity to reach readers who may have already seen a particular ad recently.

So, as an advertiser on BookBub, keep in mind that while your ad may be the highest bidder for one reader, it doesn’t guarantee that the same ad will be shown to every reader in rapid succession.

In our example, we discussed three campaigns targeting the same audience, but in reality, the auction becomes much more complex when we have millions of readers and thousands of ads, all competing for attention.

The auction calculations take into account various factors, such as the specific preferences of individual readers and the custom combinations of author interests, categories, retailers, and regions. This means that multiple layers of targeting influence your ad’s chances of winning impressions.

For instance, let’s say you have a campaign targeting readers interested in a specific author, enjoy certain book categories, prefer specific retailers, and reside in particular regions. When a reader meeting these criteria opens their BookBub email, the auction algorithm runs through a series of calculations to determine which ad is the highest bidder considering all these matching criteria and thus wins the impression.

However, it’s important to note that this is a simplified illustration, and the real auction process is much more intricate. With millions of readers and thousands of ads, there are numerous combinations and possibilities at play. To fully understand how additional layers of targeting can impact your ad’s chances of winning impressions, I encourage you to do more hands-on with BookBub Ads.

Very Much Important: Understanding the Cost of BookBub Ads

In BookBub Ads, the cost you pay for each time your ad is shown or clicked depends on your bid and the competition from other ads in the auction.

If your ad has the highest bid, you will pay slightly more than the second-highest bid to secure the impression. It’s important to note that your bid represents the maximum amount you’re willing to pay to reach your desired readers, but in reality, you often pay less than your bid.

It means that If your ad has the winning bid, you will pay the rate of the second-highest bid for that reader. Specifically, you’ll pay a rate one cent higher — just enough to beat the next highest bid. Remember that your bid is the maximum rate that you would be willing to pay to reach readers in your target audience, but in practice, you’re almost always going to pay a lower rate than what you actually bid.

Let’s revisit the first scenario we discussed earlier. In that case, the ad with the highest bid won the auction, but what rate does the winning advertiser actually pay? Well, the second-highest bid was $10, and the winning advertiser pays just a little bit more than that.

In terms of cost per thousand impressions (CPM), the winning advertiser would pay a rate of $10.01. Now, CPM rate refers to the cost for every 1,000 impressions, so when we break it down to a single impression, it comes out to be $0.01001.

To put it simply, if you’re the winning advertiser and your ad is shown 1,000 times, you would pay $10.01 in total. However, for each individual impression, you’d be paying a tiny fraction of a cent, specifically $0.01001.

This system allows advertisers on BookBub to have a competitive and fair bidding process, where the winning advertiser pays just a bit more than the second-highest bid. It ensures that advertisers have the opportunity to reach their target audience while maintaining cost efficiency.

Another Important Rule To Be Aware Of

Now, there’s an important rule to keep in mind when it comes to bidding on BookBub Ads. You can’t bid against yourself.

Let me explain what that means.

If you create multiple ads targeting the same group of readers, those ads will compete to win impressions among that audience. However, here’s the key point: your own bids won’t change your pay rate. Let’s take an example to understand this better.

Let’s say there’s an advertiser named Advertiser A who has two ads running. Both of these ads are targeting the same readers and have both the highest and second-highest bids. When the auction runs, Advertiser A’s first ad, let’s call it Ad #1, wins the bid.

Here’s the important part: Advertiser A will pay the next highest bid rate that is not theirs. So, if Advertiser B had the second-highest bid for that specific ad, Advertiser A would pay the rate of Advertiser B’s bid, not their own.

This rule ensures fairness in the auction process and prevents advertisers from inflating the rates they pay by bidding against themselves. So, even if you have multiple ads targeting the same audience, your bids won’t affect your rates.

How Your Budget is Protected

There are some limits in place to protect your budget. First, you will never pay more than the maximum cost per thousand impressions (CPM) or cost per click (CPC) that you set when you create your ad campaign. This ensures that you won’t exceed your planned spending.

Additionally, BookBub Ads will never charge you more than your maximum overall budget. This means that you have full control over how much you spend on your ad campaign. Whether you want to set a budget of just $10 or over $1,000, it’s entirely up to you.

So, while the cost for each individual impression or click may vary based on the competition from other advertisers, you can rest assured that you will never pay more than your maximum CPM or CPC bid, and your total spending will always stay within your designated budget.

How Can I Tell if My Ad Is Being Shown to Readers?

Depending on the specific audience you are targeting, the competition from other advertisers, and your own preferences as a BookBub or Chirp user, it’s possible that you may not see your own ads in your emails or on BookBub.com. However, you can track the performance of your ads using the impressions data in your ads dashboard. The number of impressions represents the number of times your ad had the opportunity to be seen by readers.

When your ad is displayed to readers, it will appear exactly as the image you uploaded during the ad setup process. To see how your ad looks to readers, you can review the details of your ad in the dashboard. This way, you can ensure that your ad is visually appealing and effectively communicates your message to the target audience.

Remember that even if you don’t personally see your ad, it doesn’t mean it’s not being shown to other readers who fit your target criteria. Monitoring the impressions data and analyzing the performance metrics will give you valuable insights into how well your ad is reaching and engaging with the intended audience.

What Can I Do to Increase the Chances of My Ad Winning in the Auction?

We’ve discussed how the auction works and the factors that influence your ad’s success. Now, let’s explore some strategies to improve your chances of winning impressions in the auction. Here are a few things you can try:

1. Increase your bid: One way to boost your ad’s competitiveness is by raising the amount you’re willing to bid. A higher bid increases the likelihood of winning impressions against other advertisers.
2. Switch to CPM bidding: As I informed you earlier, if you’re struggling to win impressions with a CPC campaign (where you pay per click), consider switching to CPM bidding (where you pay per 1,000 impressions). CPM bidding can often make it easier to secure impressions.
3. Adjust your targeting: If you’re already using a substantial bid but still not winning impressions, it could be that your target audience is highly competitive. In such cases, you may want to refine your targeting by selecting different authors or genres that are less saturated with advertisers.
4. Explore different regions or retailers: If you’re exclusively targeting readers on Amazon US, consider expanding your reach to include other regions or retailers. Targeting less competitive regions or alternative platforms can give you an advantage by reducing the number of advertisers competing for the same audience.
5. Experiment with category targeting: Targeting specific genre categories related to your ad can increase the potential size of your audience. However, keep in mind that engagement may be lower with category-targeted campaigns, resulting in a lower click-through rate.

Implementing these strategies can enhance your ad’s competitiveness in the auction and improve your chances of winning impressions. Remember to monitor and optimize your campaigns to maximize their effectiveness.

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Conclusion

Thank you for taking the time to read this blog until this point. I hope that it has provided you with valuable information and insights. If you found this blog helpful and it has added value to your understanding, I would greatly appreciate your feedback.

Please feel free to leave a comment below to share your thoughts and let me know how this content has benefited you. Your feedback is valuable to me and helps to create content that meets your needs.