> For the complete documentation index, see [llms.txt](https://docs.exads.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.exads.com/advertisers/campaigns/creating-a-campaign/step-4-pricing-and-limits.md).

# Step 4 - Pricing & Limits

<figure><img src="https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2Fu9idJ3BR6wZlYJ34dVxs%2Fcreate-campaign-step4.gif?alt=media&amp;token=f60bc11a-9426-4731-bd2f-fe838c0a6941" alt=""><figcaption></figcaption></figure>

In the **Pricing & Limits** tab Advertisers set how the pricing will work for the campaign.

* **Pricing**: Use the radio button to choose between the pricing models.
* **Frequency Capping**: Use this feature to set limits on how many times a variation will be displayed to a unique user in a period of time. This feature is disabled by default. Use the switch to turn it on.

## Daily limits <a href="#daily-limits" id="daily-limits"></a>

![Daily Limits](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FHtFRX2tc2GFvHDPQZCTG%2Fdaily-limits.png?alt=media\&token=cac4898b-f06e-421d-ad8e-563e274ad8cf)

Turn on the **Daily Limits** switch to set daily limits for the **Budget** or **Impressions** for the campaign.

### Budget <a href="#budget" id="budget"></a>

This is the daily budget of the campaign. We recommend that you set a budget limit from the **Daily Budget** drop-down menu using realistic targets. When you choose a **Daily Budget**, you can choose how you want that budget to be delivered: In the **Delivery Mode** drop-down, there are two options:

* **Quick Delivery**: This means that campaign will show until it has reached the **Daily Budget** that you set.
* **Distribute throughout the day**: This means that an algorithm will control how the campaign displays to ensure that the **Daily Budget** is reached over the course of the whole day.

### Impressions <a href="#impressions" id="impressions"></a>

In the same way as for **Daily Budget**, you can set a limit for the maximum amount of impressions the campaign can receive in a single day. From the **Delivery Mode** drop-down, choose how you want those impressions to be delivered:

* **Quick Delivery**: This means that campaign will show until it has reached the **Max Daily Impressions** that you set.
* **Distribute throughout the day**: This means that an algorithm will control how the campaign displays to ensure that the **Impressions** limit is reached over the course of the whole day.

### How budget and impressions are distributed <a href="#how-budget-and-impressions-are-distributed" id="how-budget-and-impressions-are-distributed"></a>

When the **Daily Limits** feature is set to **Distribute throughout the day**, an algorithm controls how the campaign displays to ensure the budget/impressions limit is reached over the course of the whole day.

The algorithm works like this:

When you set a **Daily Limit** for the campaign, this functions like a 'balance' of budget or impressions that the campaign has available to spend during the day, starting at 0:00 in the New York time zone. Budget and impressions are subtracted from this initial balance over the course of the day.

The system takes snapshots of this balance every 15 minutes and uses them to calculate two things:

1. Spending velocity: How fast the balance is being spent, based on the balance in each snapshot compared to the previous one.
2. Acceleration: Whether spending velocity is speeding up or slowing down, based on comparing velocities between the current snapshot and the last.

These spending velocity and acceleration values are used to tell us how much time the campaign will take to spend all of its balance if we do nothing: We use the ratio between this time and the actual time until the end of the day to calculate how much we need to slow things down, to ensure the campaign runs for the whole day.

{% hint style="info" %}
**Daily Limits** and the associated algorithm apply to one 24-hour period. The period begins at 0:00 in the New York time zone. Limits do not carry over from previous days.
{% endhint %}

### Total Limits <a href="#total-limits" id="total-limits"></a>

![Total Limits](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FmBYKLWlUYuFQxDjwlDaj%2Ftotal-limits.png?alt=media\&token=d13c9971-c275-4997-88aa-4666e5012890)

In this section you can set a limit on the **Budget** and/or **Impressions** the campaign can receive. The campaign will run for as much time as it takes to reach either of these limits.

{% hint style="info" %}
**Total Limits** start counting when you enable them. They exclude previous budget or impressions. For example, a 10,000-impression limit on a campaign with 20,000 impressions allows 10,000 further impressions.
{% endhint %}

### Time Period <a href="#time-period" id="time-period"></a>

![Time Period](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FJNtT99v0u2brTPZ9xHIA%2Ftime-period.png?alt=media\&token=fdf4c3f3-627c-4937-bc25-5ebb7268397d)

Here you can set a time period for the campaign to run in. Click on the calendar icon to choose start and end dates for the campaign.

## Pricing models <a href="#pricing-models" id="pricing-models"></a>

For most formats the pricing models **CPC**, **CPM**, **Smart CPM** and **Smart Bid** will be available. For **Email Clicks** and **Direct Links** campaigns, the pricing model **Smart CPC** is available also.

<table data-header-hidden="false" data-header-sticky data-search="false"><thead><tr><th>Ad Format</th><th>CPM</th><th>Smart CPM</th><th>CPC</th><th>Smart CPC</th><th>CPV</th><th>Smart Bid</th></tr></thead><tbody><tr><td>Banner</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr><tr><td>Desktop Fullpage Interstitial</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr><tr><td>Email Clicks</td><td></td><td></td><td>X</td><td>X</td><td></td><td>X</td></tr><tr><td>Mobile - 300x100</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr><tr><td>Mobile Fullpage Interstitial</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr><tr><td>Native Ad - 300x300</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr><tr><td>Popunders</td><td>X</td><td>X</td><td></td><td></td><td></td><td>X</td></tr><tr><td>Push Notifications (deprecated)</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr><tr><td>Push Notifications 720x480</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr><tr><td>Tab - Direct Link</td><td></td><td></td><td>X</td><td>X</td><td></td><td>X</td></tr><tr><td>Video</td><td>X</td><td>X</td><td>X</td><td></td><td>X</td><td>X</td></tr><tr><td>Web Instant Message 250x150</td><td>X</td><td>X</td><td>X</td><td></td><td></td><td>X</td></tr></tbody></table>

### CPC (Cost Per Click) <a href="#cpc-cost-per-click" id="cpc-cost-per-click"></a>

You set the price you will pay for each click on the ad.

**Use**: This model is suitable for campaigns that have a very high View Rate but a low CTR.

### CPM (Cost Per Mille) <a href="#cpm-cost-per-mille" id="cpm-cost-per-mille"></a>

You set the price you will pay for 1,000 impressions (views) of the ad.

**Use**: Suitable for campaigns focused on conversions.

### Smart CPM <a href="#smart-cpm" id="smart-cpm"></a>

Smart CPM is a custom pricing model which allows you to bid for impressions at the best price possible.

When using Smart CPM, you set up the maximum you are willing to pay, and the system will determine the cost based on the minimum price for that Geo/device and the top CPM that is running in that target at the moment.

The system determines the lowest price you must pay to get the best position in the rotation of the campaigns up until your maximum bid price.

**Use**: Smart CPM campaigns are also suitable for campaigns that are focused on conversions, and can help you get the best price.

**Example of Smart CPM in action:**

If the top bid is 0.4 cents, and you set up a Smart CPM campaign of 0.7 cents, then you will become the top bidder and get more of the traffic.

You will only pay what is needed to keep you in the top position, rather than the price you have set in the campaign. You will stay in that top position until another advertiser matches or outbids 0.7 cents, then you will start getting less traffic.

Used wisely, Smart CPM can save you time and guarantee the best visibility at the most affordable price.

{% hint style="warning" %}
Set realistic budgets. A high bid with broad targeting and a small budget increases overspend risk.
{% endhint %}

### Smart CPC <a href="#smart-cpc" id="smart-cpc"></a>

This is only available for **Email Clicks** and **Direct Links** campaigns. Smart CPC works in a similar way to Smart CPM, but you are bidding for clicks rather than impressions.

In Smart CPC, you set up the maximum you would pay per click, and the system will determine what you pay depending on the minimum price and the top CPC, just like Smart CPM does.

The system also determines the lowest price you need to pay to get top position, up until your maximum bid price.

**Use**: This model is suitable for campaigns that have a very high View Rate but a low CTR.

## Smart Bid <a href="#smart-bid" id="smart-bid"></a>

[Smart Bidding AI](/advertisers/campaigns/smart-bid-pricing-model.md) is an AI pricing model. Instead of Advertisers setting one price and manually managing it, they set a goal:<br>

1. Target CPA (Cost per Acquisition)
2. Target ROAS (Return on Ad Spend)

Once a goal is set, Smart Bidding AI automatically determines an optimal bid for the Advertisers’ campaigns based on the likelihood of a user converting. It does this by using historical information about the campaign and daily model training based on the most recent campaign data, so its predictions continue to adapt as offers, competition and traffic patterns change.

### Pre-requisites <a href="#pre-requisites" id="pre-requisites"></a>

{% hint style="info" %}
To select Smart Bidding AI as a Pricing model, an Advertiser needs:

* A verified and appropriately funded advertising account.
* Conversion tracking implemented and firing correctly. See Setting Up Conversion Tracking on EXADS.
* A conversion goal to optimize for.
* For the Target ROAS Bidding Strategy, conversion goals set with Fixed or Dynamic values
  {% endhint %}

### Creating a campaign <a href="#creating-a-campaign" id="creating-a-campaign"></a>

1. Create a Campaign following the [Step 1 - General](/advertisers/campaigns/creating-a-campaign/step-1-general.md) instructions.
2. Select **Smart Bid** as your **Pricing model**.
3. Choose a **Bid Strategy** of either:

* **Target CPA**
* **Target ROAS**

### Selecting the Target CPA Bid Strategy

![Target CPA Bid Strategy](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FDQ5JBq6ric56VkHkY1tD%2Fsmart-bid-target-cpa-bid-strategy.png?alt=media\&token=9d67cd52-0422-4ad3-9206-9f13517ed946)

1. Input the **Target CPA** value. E.g. $3.
2. Input an **Initial CPM** or **CPC** value to start the initial bidding and to gain data significance towards determining your optimal bid value.
3. Choose a **Conversion Goal** to optimize for. Note that if no Goal is available, you will be prompted to create one.
4. Select your **Bid Optimization** method.

* Selecting **Maximize Volume** will bid more aggressively and maximize the number of conversions. We recommend selecting this for starting your Smart Bid campaign.
* Selecting **Maximize Target CPA** will bid more conservatively towards your desired CPA value.

5. Select any other relevant campaign settings required to get your campaign running and click **UPDATE**.

{% hint style="info" %}
The minimum Target CPA value is `0.001`.
{% endhint %}

### Selecting the Target ROAS Bid Strategy <a href="#selecting-the-target-roas-bid-strategy" id="selecting-the-target-roas-bid-strategy"></a>

![Target ROAS Bid Strategy](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2Fe3nD5A01ktAViM8jbDxV%2Fsmart-bid-target-roas-bid-strategy.png?alt=media\&token=28a5b12f-36e4-4483-a9b5-ec7416d64344)

1. Input the **Target ROAS** value. E.g. 200%
2. Input an **Initial CPM** or **CPC** value to start the initial bidding and to gain data significance towards determining your optimal bid value.
3. Choose a **Conversion Goal** to optimize for. Note that the goal must have a Fixed or Dynamic value specified.
4. Select your **Bid Optimization** method.

* Selecting **Maximize Volume** will bid more aggressively and maximize the number of conversions. We recommend selecting this for starting your Smart Bid campaign.
* Selecting **Maximize Target ROAS** will bid more conservatively towards your desired ROAS value.

5. Select any other relevant campaign settings required to get your campaign running and click **UPDATE**.

## In-Stream pricing models <a href="#in-stream-pricing-models" id="in-stream-pricing-models"></a>

As an Advertiser, as well as CPM, Smart CPM, and CPC, you can use the **Cost Per View** pricing model for your In-Stream campaigns. When creating an in-stream video campaign, CPC is the price when the visitor clicks on the ad, regardless of how long they watch it for. This model is suitable for campaigns that have a very high View Rate but a low CTR.

### CPV (Cost Per View) <a href="#cpv-cost-per-view" id="cpv-cost-per-view"></a>

Alternatively, instead of CPC, you can use CPV to base the cost on the visitor actually viewing the video. The cost is triggered when ten seconds of the video ad are displayed to the site visitor at normal speed.

**Use**: This model is suitable for campaigns that have a very high CTR but a low View Rate.

{% hint style="warning" %}
Desktop and mobile video implementations differ. Create separate campaigns for desktop-only and mobile-only traffic.
{% endhint %}

## How eCPM is calculated for CPC and CPM <a href="#how-ecpm-is-calculated-for-cpc-and-cpm" id="how-ecpm-is-calculated-for-cpc-and-cpm"></a>

* With CPC, the eCPM will be determined by the bid price and the CTR. As a result, advertisers should have BOTH a competitive bid and generate a good CTR to receive more traffic.
* With CPM/Smart CPM campaigns, the eCPM corresponds basically to the CPM bid price. With this pricing model, the more you bid, and the higher the frequency capping, the more traffic share you will receive.

## Bidding and traffic estimation <a href="#bidding-and-traffic-estimation" id="bidding-and-traffic-estimation"></a>

### Bidding <a href="#bidding" id="bidding"></a>

Your campaign(s) are in constant competition through the real time bidding system which is based on the calculation of the eCPM. As a result, you should have a competitive bid to receive more traffic.

To check the top CPM/eCPM bid for RON campaigns when creating a campaign, in Step 4: **Pricing & Limits**, click on **View RON Top CPM** based on your targeting selections.

To check the top CPM/eCPM bid for Premium campaigns when creating a campaign, in Step 5: **Zones**, select **Premium** from the **Traffic Type** drop-down and select the Premium spot you want to target. Then go to the **Top CPM** column and click on **View**. You will need to match the top bid or beat it to get a higher volume of traffic.

### Traffic Estimates <a href="#traffic-estimates" id="traffic-estimates"></a>

![Traffic Estimates](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FxNTuEDQVGOkOM3ltXgFK%2Ftraffic-estimates-box.png?alt=media\&token=71136847-02df-4132-b9c8-70641a1799ff)

When setting up a new campaign, you will see the **Traffic Estimates** box on the right side of the page. Here the available daily impressions are shown based on the settings you configured in your campaign. Press the refresh button to see the estimates based on your latest changes.

Campaigns should receive traffic from the moment they run until either the daily budget has been reached or the campaign has been paused.

{% hint style="info" %}
Campaigns can continue briefly after reaching a daily budget or being paused. Servers need time to receive the update.
{% endhint %}

{% hint style="warning" %}
High traffic volumes and popular countries can use your budget quickly. Set realistic limits and targeting.
{% endhint %}

## Setting a budget for your campaign <a href="#setting-a-budget-for-your-campaign" id="setting-a-budget-for-your-campaign"></a>

The budget determines the limit of what you are willing to pay for the traffic you want to receive. It's important then, that you are realistic when setting your campaign budgets, as targeting too many impressions on a small budget may cause you to overspend. We want to ensure you avoid that!

To measure how much traffic you might receive, note the **Traffic Estimates** panel in the bottom right of the screen. Click on the **Refresh** button. Normally, the traffic that you can get is about 2-5% of the total indicated in this tab, unless you use very specific targets and you can confirm that you have the top CPM on all the sites you are targeting.

![budget distribution](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FpHrTAKjMjzSi3IYXOv9i%2Fcampaign-budget-distribution.png?alt=media\&token=26043d83-2ee9-4a57-b142-3edf7768b04a)

When setting up a campaign, look at the traffic estimation on the right side panel. If you are using CPM or Smart CPM pricing models, you may receive a considerable volume of impressions. Setting a low budget as in the example above will almost certainly lead to an overspend. Why?

Simply because servers will need a little time to recognize how much you have spent before stopping the campaign. In the example above, you will have spent your budget within seconds, and although our servers are quick, it will still take a minute or two before your campaign will stop.

### Setting an appropriate budget <a href="#setting-an-appropriate-budget" id="setting-an-appropriate-budget"></a>

**Option 1- Calculate the required budget manually**

If you are the top bidder, let's say you receive between 5-10% of the daily impressions targeted. With that in mind and using the example from the screenshot above that means:

* 30,000,000 impressions/1000 (CPM) x bid price 0.10 = a budget of 3,000 per day

**Option 2- Budget delivery mode**

We have a feature in Step 4 of creating a campaign whereby you can choose how your campaign distributes the budget/impressions (see screenshot again). For those on small budgets you should choose the option **Distribute throughout the day**. If you do so, then instead of a budget of 3000 per day you should choose one for at least one hour's worth of traffic e.g. 3000/24 = Minimum budget of 125 EUR/USD.

**Option 3- Reduce the number of targeted impressions**

If you only want to test and do not want to spend more than 20 EUR/USD then reduce the number of impressions to fit your budget by making adjustments to your target settings in Steps 3 and Steps 5 of the campaign set up. Using the example in the screenshot above and assuming you will receive only between 5-10% of the traffic, the calculation would look like this:

* 20(budget)/ 0.10(bid price) x1000 (CPM) x 20 (assuming you are going to get 5% of the traffic = 4,000,000 impressions is the approx amount to target.

You can of course target more, using the **Distribute throughout the day** option or setting a lower bid price where possible and recalculating the approx impressions.

{% hint style="info" %}
Monitor early campaigns in [Statistics](/advertisers/advertiser-statistics.md). Pause a campaign before changing it. Spending can continue for a few minutes after pausing.
{% endhint %}

### Sample campaign bids <a href="#sample-campaign-bids" id="sample-campaign-bids"></a>

**Unrealistic Bid**

![unr](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FzLwqew8BcZLWcP1RhrD4%2Funr.png?alt=media\&token=ad2ac886-15bb-4edd-a5a5-989cb11f9f45)

In this unrealistic bid, you have set a **Daily Limit** for their **Budget** of $20. But because you are targeting very widely, (having selected **Add All** in the **Targeting** tab) the amount of impressions you are getting is very large. This means that you will almost certainly overspend your budget. To avoid this, you should set a much larger budget, or focus your targeting more selectively.

**Realistic Bid**

![real](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FIup8UG0UMA4rrCA5hPZP%2Freal.png?alt=media\&token=47a6104d-4395-481b-9bdd-b753adfae141)

This bid is more realistic. The user has focused their targeting more selectively in the **Targeting** tab, resulting in a more reasonable number of impressions. In this case, the user will probably not overspend their budget of $100.

## Frequency Capping <a href="#frequency-capping" id="frequency-capping"></a>

When running a CPM or CPC based campaign, Frequency Capping allows you to limit the number of times a unique visitor sees ads from it within a defined time period.

![frequency capping](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2F8HUhG7zNfv1DvByrmiZL%2Ffrequency-capping-crop.png?alt=media\&token=0b44f353-6ab5-42eb-b790-5131c6d30254)

When you turn on the **Frequency Capping** switch, you can select whether to apply the limit at the **Campaign Level** or the **Ad Variation Level**.

You can also use the drop-downs to set the maximum number of impressions a unique visitor can see within a set number of hours or minutes, choosing from 1 to unlimited impressions.

* **Campaign-Level Frequency Capping**: The set value determines the **total number of impressions** the entire campaign can receive. The sum of impressions from all ad variations will comply with and not exceed this limit.
* **Ad Variation-Level Frequency Capping**: The set value determines the maximum number of impressions **each individual ad variation** in the campaign can receive.

### Frequency Capping Example <a href="#frequency-capping-example" id="frequency-capping-example"></a>

**Example (Campaign-Level)**: If you set the cap to **one total impression** every 24 hours in a campaign with ten variations, a unique visitor will see **only one impression total** from any of the ten variations within that period.

**Example (Ad Variation-Level)**: If you set the cap to **one impression per variation** every 24 hours in a campaign with ten variations, a unique visitor can see up to **ten total impressions** (no more than one impression of each variation) within that period.

**Frequency Capping Strategies**

There are two major strategies for using Frequency Capping.

**1. Focus on top impressions**

Set a small frequency capping (one to three) and a high-CPM bid to get on top of the rotation of campaigns.

* Advantages: Traffic performances are higher and traffic is very targeted.
* Disadvantages: The lower volume and tough competition drives prices up.

**2. Reach middle or remnant inventory**

Set a bigger frequency capping (four to unlimited) and an average or minimum CPM bid.

* Advantages: Less competition, affordable prices. The campaign will get conversions on quantity over quality.
* Disadvantages: Traffic performance is lower. High traffic volume means you need to work more on optimization.

{% hint style="warning" %}
High frequency caps can use your daily budget quickly and may cause an overspend.
{% endhint %}

{% hint style="success" %}
Test different frequency caps and campaign types. This helps you find the right exposure for stronger returns.
{% endhint %}

## Bidder <a href="#bidder" id="bidder"></a>

The **Bidder** switch allows you to automate the optimization of your campaigns by adjusting your bids per ad zone and blocking non-converting ad zones. If you turn the bidder on, you can define a bidder algorithm by clicking **+Create New Bidder Algorithm**. Once you have defined a bidder algorithm, you can simply select it from the drop-down to apply it to future campaigns.

You can find additional information about minimum prices by clicking **View Minimum Prices**. You can also click **View RON Top Smart CPM** to check if your bid is competitive enough.

![step3](https://2122107279-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FualFKt6C8xdYfe2WEYpJ%2Fuploads%2FLBpAMEK2Oh6AoDBZbjMQ%2Fbidder-algo-add.png?alt=media\&token=f2f7e2bf-9eab-4558-86cc-22d4b1772e5b)


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