When publishing a paid display campaign in Feathr, there is a required $5/day minimum budget. This requirement ensures your campaigns adhere to best practices for programmatic advertising, keeping them competitive in the marketplace and targeting quality audiences. Let's learn a little more about how and why this requirement was designed.
Quick Fact Sheet
- All Ad Campaigns published after April 16, 2024 will require a budget of at least $5/day.
- The Feathr app will prevent campaigns with budgets below $5/day from being published.
- This does not affect campaigns published before April 16, 2024, including those that are already set to launch after April 16.
- The purpose of this change is to bring all Feathr Ad Campaigns into compliance with industry best practices and improve competitiveness in the programmatic marketplace.
Programmatic Primer
Ad Campaigns in Feathr belong to a digital advertising category called programmatic display advertising. These campaigns are successful at targeting narrowly-defined audiences because they flip the old print advertising model on its head; they target the audience first, and let the ads be published wherever that audience might go.
Because of this, your target audience may see the ad on a low-traffic website about a niche hobby, and may also see it on the front page of the Wall Street Journal. They may also see the ad higher or lower on the page, or bigger or smaller.
The ads "follow" their intended target, and their placement depends on the target audience's browsing habits. The more prominent ads earn more clicks and conversions, but cost more, in relative terms.
The decision to enforce a $5 minimum daily budget was informed by Feathr customer demand for more competitive campaigns in a changing programmatic marketplace.
Better Budgets
In order for a campaign to display ads to as much of its target audience as possible, the campaign must distribute its budget as efficiently as possible. An underfunded campaign will show ads to nearly the entire audience, but mostly in sub-optimal placements. In that case, your budget will still get spent, but campaign performance will likely be underwhelming.
A $5 minimum daily budget ensures that your campaign has enough resources to be competitive against other bidders in the programmatic marketplace. It does not guarantee runaway success—nothing can guarantee that. It is the minimum starting point for an adequately funded campaign, and, along with the right audience, eye-catching creatives, and a meaningful message, is an essential component to the success of your campaign.
How and Why
Every campaign has a fixed cost merely to publish it, before it can begin showing impressions. Feathr's bid range take that into account, with a $5 minimum CPM bid being just over the threshold of covering fixed costs plus enough impressions to deliver the ads to the target audience. At $5/day, your campaign will perform at the minimum recommended industry best practice, which is why Feathr prevents a budget lower than that.
It is recommended that any programmatic campaign budget for at least one CPM (cost per mille, or unit cost of 1000 impressions delivered to the target audience) per day. The $5 minimum daily budget enforces that requirement to ensure campaigns are funded to the bare minimum industry standard, but of course an even higher budget will win more attractive ad placements, which increases the chances of a successful campaign.