Connexity’s New Bidding Structure
Connexity has announced yesterday that they will be introducing a new bidding structure for Targeted Bids. Merchants have been using the Targeted Bids in conjunction with Single Rate Smart Pricing for several months, however the biggest disadvantage was the limited range that bids were permitted. According to Connexity, effective immediately, the cap on Targeted Bids will be removed.
What Does This Mean For Merchants Using Connexity?
With the ability to now bid lower on poor performing products, and bid higher on products that convert with regularity, merchants will have better control over the quality of leads being directed to individual products. This bidding structure is similar to other bidding on platforms like Google and Shopping.com.
Target Bids will continue to be used as the bid signal for your pricing and average CPCs should remain close to your average category Target Bid amount. The CPCs for higher quality leads (clicks) might go up but should be balanced out by CPCs on lower quality leads coming down.
FROM CONNEXITY:
Dear Valued Merchant,
The Connexity unified network and new bidding structure have now been live for several months. Target Bids have been widely adopted in conjunction with Single Rate Bids. Our Smart Pricing system has allowed us to adjust CPCs according to conversion rates and acquire higher quality leads. Historically, Target Bids have been capped, which has limited our ability to fully utilize Smart Pricing. Effective today, we are removing the Target Bid cap. This change to the bidding requirements for Target Bids will enable us to sufficiently price down lower quality clicks and charge you more for higher quality clicks. We make this determination of quality based on modeled analysis of historic sales conversion data. We will continue to optimize to a cost of sale goal and use Target Bids as a signal for an average CPC range, however please be aware we can charge you more than the Target Bid amount, and always charge you less than the Single Rate.
What do I need to do?
Nothing. There are no changes needed on your end. We don’t recommend making any changes to current bidding strategies. You should continue submitting Target Bids and Single Rate bids exactly as you’re doing today. You can continue to place both Target Bids and Single Rate bids through your data feed or through the Connexity Bidding Tool. If you haven’t already, installing our free ROI Tracker will allow us to better partner and optimize your campaign towards your specific performance goal.
We thank you for our continued partnership. Please contact your Account Manager with any questions or if we can be of further assistance.
Best,
Connexity Merchant Services
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