The Experience Vs The Newbie PPV Marketer

Bidding war and bid prices shot up to sky high. Your profit margin starts to become like crap and eventually becomes unprofitable. What used to be a $100/day campaign has now become totally unprofitable.

This is a common situation that occurs everyday on almost every campaigns if you are doing PPV traffic. Now just with Trafficvance, but with almost every ppv network available in the industry.

What happens with some of your competitors is that they will purposely go into a bidding war with you and make your bids go till a point where is reaches unprofitability. And what do you think the usual marketers will do? Oh this offer is no longer profitable, let’s just move on and the user will go on to pause or delete the campaign.

And what do you think the experience marketer will be doing? He’ll actually bid down his bids to $0.01 and watch you literally kill yourself with your high bids and watch you delete or pause the campaign and then he will come back up onto the surface and start bidding at low prices again and ROI resumes back to its original state.

Another scenario that could happen when bidding war occurs is that the experience marketer knows their EPV and will never bid past that value so that they will not start losing money. The newbie marketer on the other hand, doesn’t know their EPV or what EPV even means and will start fighting for the number 1 position. The experience marketer will then drop their bids so that they will just be $0.01 above #3 while the number 1 guy will remain bidding at high prices thinking that his competitor has given up fighting with him.

While you may be the number 1 guy getting 75% of the traffic from your targets, your profitability may not even match the #2 bidder. Here’s an example;

You bid $0.065 at number 1 position and your EPV is actually $0.075. you get 75% of the traffic and every day you get 7500 views. Your profit per day is actually $0.01 x 7500 views which gives you a profit of $75 per day.

The #2 guy on the other hand, bids #2 at only $0.015 and his EPV is also $0.075. He gets 15% of the traffic and so gets 1500 views per day. His profit per day actually comes out to be $0.06 x 1500 = $90

Can you see why even though the number 1 bidder might be getting the most traffic, it doesnt mean he is making more profit than the number 2 guy?

The sucky issue with PPV network is that they only tell you when you are outbidded but doesn’t tell you when you are overbidding on your targets. This will cause you to flush a lot of your cash away down trafficvance toilet which will reduce your ROI.

Solution: A simple solution is actually to just reset your bids down to the minimum of $0.01 and start bidding up again to the top position again. This will allow you to stay at the top of the game with the minimum cost.

For me, i personally reset my bids on a daily basis and then rebids all my targets manually to make sure i don’t spend any unnecessary expenses to keep my ROI at its maixmum.

It sure is mundane and time consuming considering if you have hundreds of targets to bid but its entirely up to you to save money or waste 15mins of your time daily.

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