Maximum Bid

What is a Maximum Bid?

It is the bid that you set to determine the highest amount you are willing to pay every time your ad is clicked. 

Speakol’s Old Bid Logic:

Speakol used to ask you, as an advertiser, to set the amount they are willing to pay per click, per impression, or per action, only indicating the minimum bid one can set per category. So if you set your CPC to $1 and received 100 clicks, you were charged $100. 

Speakol’s New Maximum Bid Logic:

Speakol will ask you to set the maximum bid, which is the highest amount they are willing to pay per click, impression, or action to win the auction. Then, our automatic bidding system will place the lowest bid necessary and never exceed the maximum bid you set. 

So, for instance, if you set your maximum bid to $1, the automatic bidding system will find you clicks for $1 or less than, and never more. 

How does the Maximum Bid work?

The ad position depends on two things:  ad performance, and bid.

In this sense, there are two scenarios:

1. High-performing ads receive the best positions for a normal bid.

2. Average-performing ads receive the best position for a high bid. 

Before, each advertiser was charged the exact amount they bid on. Now the new maximum bid will only charge them the amount that can allow them to win the auction and get the best position. 

If someone bids against you, the technology will be modified to bid one level higher to grant you a competitive edge to win any auction, again without ever exceeding your maximum bid amount. Therefore, Speakol recommends that you set a maximum competitive bid that will be optimized without limiting yourself to the minimum bid indicated. 

If you decide to raise your maximum bid during a campaign, you can easily change it at any given time. 

So for example,

Ad	MaxBid	Ad Performance	Rank	Old Charged Amount	New Charged Amount
Ad 1	10$	50%	1	10$	3$
Ad 2	2$	75%	2	2$	1.66$
Ad 3	2.5$	50%	3	2.5$	2.5$

 

So, how is the first position claimed by Ad 1?

Ad 1 and Ad 2 compete over the first position. Although Ad 2 is performing better than Ad 1, Ad 1 is willing to pay $10 to win this auction, while Ad 2 is willing to pay $2. Therefore, in this case, Ad 1 wins the first rank and best position in the widget; Ad 1 is charged 50% more than Ad 2's maximum bid. 

Then, how is the second position claimed by Ad 2? 

Ad 2 and Ad 3 compete over the second position. Although Ad 3's performance is 33% less than  Ad 2 and Ad 3 is willing to pay 25% more than Ad 2, the price difference of $0.5 does not compensate for the difference in ad performance. Therefore, Ad 2 wins this auction and is charged 33% less than Ad 3's maximum bid. 

Now you ask, how about Ad 3?

Ad 3 will take the third and last place and will be charged the maximum bid he set. 

So, what do we conclude?

• Ad's position depends on the maximum bid and the ad performance. 
• To win the auction over a better-performing ad, you need to pay more. 
• If your ad is performing better than another ad you are competing against, you will pay less.

Why is the Maximum Bid Better?

1. Grants you a higher visibility
2. Guarantees a better ad position in the Speakol widget.
3. Provides a competitive edge that renders your ads more competitive. 
4. Optimizes to get you the highest number of clicks for the least possible budget granting you more clicks for a lower CPL (cost per lead). 

If you have any questions about how the maximum bid operates or its benefits, kindly contact your account manager, chat with us, or email us at [e-mail]. We will contact you within 1-2 business days to follow up and assist you.