How does the pricing system work?

Forum Moderators: werty

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How does the pricing system work?

Similar to G or O?

werty

4:32 pm on Feb 21, 2006 (gmt 0)

I was trying to setup a few campaigns today and was wondering exactly how the bid prices work.

Is the model similar to that of Google, or closer to that of Overture?

If I set my max bid at $1.00 CPC and there is no competition, do I only pay $.05 or do I pay $1.00?

I have no doubt that MSN is a prime location to buy cheap traffic, especially since many of the niches are not yet blown out, but I am wondering exactly what I will be paying based on my bids.

Does anyone have the answer to this, or can you find it on their help pages?

Thank you.

tbird

4:58 pm on Feb 21, 2006 (gmt 0)

My experience has been you would only pay 5 cents. I have several areas that I have higher max bids, but in the absence of competition have only paid the minimum 5 cents.

adCenter411

2:44 am on Feb 22, 2006 (gmt 0)

werty and tbird-
this is correct - if no competition, then what you pay is $.05.

also, in a case with competition, if you bid $1.00 and your closest competitor bids $.75, you will pay $.76, or one cent over their (next highest) bid.

thanks,
adCenter411

ccam96

3:26 am on Mar 1, 2006 (gmt 0)

Currently , the model is similar to Yahoo's pay for placement. It would be nice if they would eventually change to a Google model. We'll see..

Dogza

9:01 pm on Mar 1, 2006 (gmt 0)

No way, google's model makes me want to pull my hair out.. I'd much rather see them stay with a model closer to Overture or other traditional PPC.

ccam96

6:34 am on Mar 2, 2006 (gmt 0)

Dogza. Why wouldn't you want to have a chance to lower your CPC while improving your ad positon? Right now, your just bidding against the big boys with ad budgets to burn that don't really care about ROI as long as they get "exposure" and "branding"! At least Google levels the playing field somewhat. JMHO , of course.

michaelbs

2:36 pm on Mar 13, 2006 (gmt 0)

From my initial tests - I believe it is very similar to google adwords pricing. On my first day i was paying 0.25c per click for premium 1 position after 4 days of 26% CTR my cost per click is now 0.06c per click. It looks like they have implemented an (adwords type reward payment plan) which is great for us advertisers who serve relevant adverts. 8-)