Support Center

How are ads priced?

Last Updated: Jun 29, 2016 11:38AM EDT

Advertisers set their own budget and bid for each ad campaign. If you are the highest bidder for the audience you’re targeting, you will win impressions and pay one cent more than the price of the second-highest bid for those impressions. Ads are priced by the Cost Per Thousand Impressions (CPM). 


For example, imagine a scenario where three campaigns are targeting the same readers today:

Campaign 1: $6.00 bid
Campaign 2: $5.00 bid
Campaign 3: $4.00 bid

In this example, Advertiser 1 would win the impressions at a $5.01 CPM (one cent more than the second-highest bid). Now imagine that Advertiser 2 finished serving today, leaving Advertiser 1 and Advertiser 3 competing for impressions tomorrow. Advertiser 1 would still win, but that advertiser would now be paying a $4.01 CPM (one cent more than the new second-highest bid). Your campaign results will show the average CPM you paid throughout your campaign based on the second-highest bidders you beat for each impression. 
The amount you spend on BookBub Ads is entirely up to you! You can run a $10 campaign or a $10,000+ campaign (or anything in between). We will never charge you more than your maximum budget. The amount you pay for each ad impression, however, will depend on factors like the targeting you select and the bids other advertisers submit for the same audience at the same time. Because of this, the cost for an individual impression will always be variable, though you will never pay more than the maximum CPM you bid when you set up your campaign.
You can learn more about how the auction model works here.
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