Introducing ERS and CPA Bid Strategies

Tuesday, May 31, 2011 |

Last week, we announced several new features for DS3: Display Network Stats, Interface Updates and ERS and CPA bid strategies. Before this release, DS3 offered a position bid strategy with decimal point position capabilities. With this newest release, we’ve added two powerful ROI strategies to the mix. Let’s take a closer look at these new strategies.

Effective Revenue Share (ERS)
For advertisers with sales goals, an ERS strategy can help you see the return you're looking for from your advertising. Set an ERS strategy to target your advertising spend to a certain percentage of your sales revenue (ERS = (ad spend/revenue)x100). To reach the ERS target percentage, DS3 raises or lowers the max CPC bid based on how the actual ERS compares to the target ERS.

Cost per Activity (CPA)
For advertisers tracking actions (newsletter sign ups, page views, etc), a CPA strategy helps you keep track of your ad costs per action (CPA = ad spend/number of conversions). Though geared for advertisers tracking actions, CPA strategies can be used to target either actions or transactions. To reach the CPA target percentage, DS3 raises or lowers the max CPC bid based on how the actual CPA compares to the target CPA.

CPA/ERS + Position Strategy
For advertisers with ROI and branding goals, pair your CPA and ERS strategies with a position goal. For example, if you’d like your keywords to get a 10% ERS and stay within positions 1-3, an ERS+ Position goal gives you even more control to reach your goal.

While DS3 will do its best to achieve both your goals, the position goal will trump the ROI goal. This means that with the example above, even if DS3 can’t reach your 10% ERS goal, it still won’t target a position lower than three.

Happy Strategizing!

To read more on these new strategies, visit this page of our Help Center.
Continue to read through our Help Center or sign up for a DS3 training for opportunities to learn more about all these updates and more! Be sure to stay tuned to this blog for the most up to date information, tips, and feature updates.

Posted by Laura, DoubleClick Search Trainer