How the BeatStars Promote Bidding System Works

We're excited to announce a major update to Promote – the bidding system. This is designed to empower users to more effectively reach potential buyers and optimize their promotional strategies.

Advertisers set their bid amounts in terms of what they are willing to pay for every 1000 impressions.

• CPM (Cost Per Mille): Advertisers pay for every 1,000 impressions of their ad.
• Auction System:
  • Ads are placed in an auction format where multiple advertisers compete for the same audience.

What is the maximum bid you can make on Promote?

Currently the minimum bid is $2 per 1000 impressions and the maximum bid on Promote is $100 per 1000 impressions.

How much will I be charged if I have the winning bid amount?

When you place a bid, you’re only charged $1 more than the next highest bid. This ensures you pay just to outbid others without overpaying.  

PRO TIP: Since you can schedule campaigns to go live at any time of day, consider experimenting with different launch times to see what works best.

Scenario 1: Advertising with a $5 Budget and $100 CPM Bid

Let’s pretend you’re running a digital ad campaign for your track with a total budget of $5. You decide to set a maximum bid amount of $100 for every 1,000 impressions (CPM).

Key Components for a $5 budget and $100 CPM:

• Bid Amount: $100 per 1,000 impressions (this is the maximum amount you’re willing to pay for 1,000 views of your ad).
  • Keep in mind, this is your maximum bid. Due to the nature of auction ads, you may pay less than $100 CPM for a given impression, but you will never pay more than $100 CPM.
• Total Budget: $5 (the maximum amount you are willing to spend for the entire campaign).

Cost Breakdown for a $5 budget and $100 CPM:

Impressions: 

Since you’re bidding $100 for 1,000 impressions, your cost per impression is:

• With a $5 budget, you can calculate how many impressions you can afford:
  • Total impressions = Budget/Cost per impression = 5/0.10=50 impressions. 

• Cost per impression = 100/1000=$0.10

Potential Reach: 

• With your $5 budget at a $100 CPM, you can expect to reach a total of 50 impressions before your budget runs out

Conclusion for a $5 budget and $100 CPM:

With a $100 CPM and a $5 budget, you can achieve 50 impressions of your ad.

This is just one example of how bidding could work. We encourage you to experiment with a bidding style that works for you and your needs. Some users will opt for much lower bid amounts around $2-$5 per 1000 impressions while others may opt for higher bid amounts. ‍

Scenario 2: Advertising with a $5 Budget and $25 CPM Bid‍

Let’s pretend you’re running a digital ad campaign for your track with a total budget of $5. You decide to set a maximum bid amount of $25 for every 1,000 impressions (CPM).

Key Components of a $5 budget and $25 CPM:

• Bid Amount: $25 per 1,000 impressions (this is the maximum amount you’re willing to pay for 1,000 views of your ad. 
  • Keep in mind, this is your maximum bid. Due to the nature of auction ads, you may pay less than $25 CPM for a given impression, but you will never pay more than $25 CPM.
• Total Budget: $5 (the maximum amount you are willing to spend for the entire campaign).
  

Cost Breakdown for a $5 Budget and $25 CPM:

Impressions:

Since you’re bidding $25 for 1,000 impressions, your cost per impression is:

• Cost per impression = 25/1000, which equals $0.025
  • With a $5 budget, you can calculate how many impressions you can afford:
    • Total impressions = Budget/cost per impression, which equals = 5/0.025 = 200 impressions. ‍‍

Potential Reach:

With your $5 budget at a $25 CPM, you can expect to reach a total of 200 impressions before your budget runs out.

Conclusion for a $5 Budget and $25 CPM:

With a $25 CPM and a $5 budget, you can achieve 200 impressions of your ad.

‍Scenario 3: Advertising with a $20 Budget and $2 CPM Bid

Key Components of a $20 budget and $2 CPM:

• Bid Amount: $2 per 1,000 impressions (the maximum amount you’re willing to pay for 1,000 views of your ad).
• Total Budget: $20 (the maximum amount you are willing to spend for the entire campaign).

Cost Breakdown for a $20 Budget and $2 CPM:

Impressions:

• Since you’re bidding $2 for 1,000 impressions, your cost per impression is:some text
  • Cost per impression = 2/1000, which equals $0.002
• With a $20 budget, you can calculate how many impressions you can afford:some text
  • Total Impressions = Budget (20) /Cost per impression (.002), which equals =10,000 impressions

Potential Reach:

With your $20 budget at a $2 CPM, you can achieve a total of 10,000 impressions before your budget runs out.

Conclusion for a $20 Budget and $2 CPM:

With a $2 CPM and a $20 budget, you can achieve 10,000 impressions of your ad. This is just one example of how bidding can work. We encourage you to experiment with a bidding style that works for you and your needs. Keep in mind: this is your maximum bid. Due to the nature of auction ads, you may pay less than $2 CPM for a given impression, but you will never pay more than $2 CPM.

Scenario 4: You vs. a Second Bidder

Let’s assume you’re running a digital ad campaign with the following details:

• Your Bid: $100 CPM (you’re willing to pay $100 for 1,000 impressions).
• Second Bidder’s Bid: $90 CPM (the competitor is willing to pay $90 for 1,000 impressions).
• Total Budget: $5.

Auction Dynamics:

Winning the Auction:

• In this auction-based model, you win because your bid of $100 CPM is higher than the second bidder’s $90 CPM.
• However, the price you pay is not always your full bid of $100 CPM. Instead, you only pay $1 more than the second-highest bid. So in this case, you pay $91 CPM, which is $1 more than the second bidder’s $90 CPM.

Cost per Impression:

• Since you’re paying $91 for 1,000 impressions, your cost per impression is 91/1000=0.091 per impression.

Total Impressions:

• With a $5 budget and paying $0.091 per impression, you can afford to reach:

Total Impressions=5/.091≈ 54  impressions

Additional Resources:

• What's New in BeatStars Promote
• Tips for Using Promote for Tracks, Albums, Sound Kits, and Profiles