Introduction
The CPC Multiplier is a key feature in MGID Ads, available within the Widget Optimization (Selective Bidding) and the Sources Optimization sections. It is vital in optimizing your campaigns, enabling you to modify (increase or decrease) the cost-per-click (CPC) for each widget ID or source based on their performance.
Let's explore how it functions and how to utilize it effectively.
The multiplier is set to 1.0 by default, meaning your creatives' original CPC remains unchanged.
You can adjust the multiplier to enhance campaign performance by increasing exposure on high-performing widgets or sources or by lowering costs for underperforming creatives.
The formula for calculating the final CPC after applying the CPC Multiplier is straightforward:
- Final CPC = Base CPC × CPC Multiplier
Where:
- Base CPC is the original cost-per-click on your creative.
- CPC Multiplier is the value you set in the Widget Optimization (Selective Bidding) or Sources Optimization interface.
Example of the CPC Multiplier Function
Let’s say you’re running a campaign with three creatives, each having distinct base CPC values:
- Creative A: $0.10
- Creative B: $0.20
- Creative C: $0.30
When these creatives are served on a particular widget ID or source, the final CPC is calculated by multiplying the base CPC of each creative by the CPC Multiplier assigned to that specific widget ID or source.
For instance, if you set a CPC Multiplier of 0.5 for a particular widget ID:
- The CPC for Creative A would be $0.10 * 0.5 = $0.05
- The CPC for Creative B would be $0.20 * 0.5 = $0.10
- The CPC for Creative C would be $0.30 * 0.5 = $0.15
This means that by applying a CPC Multiplier, you can directly control how much you’re willing to pay per click for different placements within your campaign.
How to View and Understand the CPC Multiplier
When you modify the CPC Multiplier in the MGID Ads interface, the following details are displayed:
Your CPC X (CPC Multiplier Field)
This field is where you enter the desired CPC Multiplier value. The label "Your CPC" remains static as a reminder that the multiplier will impact the current CPC for the selected widget ID or source.
Highest and Lowest CPC
Below the CPC Multiplier field, the interface dynamically updates to show the highest and lowest CPC values from your current set of creatives. This real-time display lets you see how the changes will affect the overall CPC range for your campaign before applying them.
Minimum and Maximum CPC Constraints
MGID Ads ensures that your CPC adjustments stay within the permissible range for your target geographic region. Each region has its own specific minimum and maximum CPC thresholds.
Here’s how it works for Minimum CPC: If the multiplier you set causes the CPC to fall below the minimum allowable threshold, the system will automatically prevent the adjustment to ensure compliance with the region’s minimum CPC levels.
Then, the system will set the widget to the lowest CPC possible for the region and notify you that the price cannot go any lower. For example, if your creative has a base CPC of $0.10 and you set a multiplier of 0.5, the calculated CPC would be $0.05. However, if the minimum allowable CPC for the region is $0.07, the final CPC will be set to $0.07 instead, and a notification will inform you that the price cannot be reduced further.
It works similarly for Maximum CPC: If the multiplier increases the CPC beyond the maximum allowable threshold, the system will cap the CPC at the maximum level. You will be notified that the price cannot exceed this limit.
These constraints are automatically applied to safeguard against unintentional underbidding or overspending in your campaigns.
In summary, the CPC Multiplier is a valuable tool for optimizing campaigns by adjusting the cost-per-click for specific widget IDs or sources. Using this feature, you can boost performance by increasing exposure on high-value placements while managing costs on less effective ones. The MGID Ads interface provides a clear view of how your changes will affect the campaign, enabling informed decisions.