Optimized cost-per-click (oCPC) bidding has become increasingly popular as it aims to optimize ads for conversions through intelligent bidding. As a result, many customers now prefer to manage multiple campaigns within a single daily budget using an oCPC bidding strategy.
However, using a unified target conversion and cost assessment for a single oCPC bidding strategy may lead to a conservative approach from the smart bidding model due to a tighter budget. This can result in poor budget allocation for campaigns with low conversion rates, which may cause fluctuations in traffic and cost for the bidding strategy.
To counter this, Baidu has introduced a new featured called shared, which allows advertisers to allocate a single daily budget among multiple campaigns in the same account. Let’s explore how this can help advertisers on Baidu going forward!
How do shared budgets help advertisers with their bidding?
Shared budgets help advertisers better allocate their budget between campaigns, minimizing the potential for unstable conversion bidding and missed opportunities to acquire customers due to budget-constrained bidding.
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Shared budgets offer several benefits when compared to traditional campaign-level budgets:
- Shared budgets enhance the overall performance of an oCPC bidding strategy: By allocating a shared budget, the smart bidding model can actively identify conversion opportunities while maintaining cost control. In particular, the budget can be allocated flexibly to address issues pertaining to high-volume campaigns, such as unstable traffic, increased cost due to competition, and insufficient budget.
- Help advertisers achieve their business goals and improve efficiency: Advertisers often have multiple campaigns serving the same business goal, but manually allocating budget for each one individually can be difficult. However, by leveraging a shared budget, the smart bidding system can intelligently allocate budgets among the campaigns to ensure maximum exposure for all ads with the same business goal. A shared budget can be particularly advantageous during major holidays and promotions as it can dynamically allocate budgets to higher-performing campaigns based on traffic spikes.
Ultimately, leveraging an oCPC bidding strategy with a shared budget can significantly benefit advertisers by saving time and improving efficiency. By allowing the ad platform to automatically adjust bids based on performance, advertisers can focus on other aspects of their campaigns while still achieving results.