Automatic vs Manual Bidding: Music Advertising Cost Control

Choosing between automatic and manual bidding affects how advertising platforms compete for placements on behalf of campaigns. Automatic bidding lets algorithms optimize. Manual bidding gives advertisers direct control. Understanding the tradeoffs helps musicians select appropriate approaches.

What Each Bidding Type Does

Automatic bidding (platform default): The platform determines optimal bids for each auction based on budget, objectives, and competition. No input required beyond budget setting. Platform aims to maximize results within budget.

Manual bidding (cost caps and bid caps): Advertiser sets maximum acceptable costs or bids. Platform operates within these constraints, even if it means reduced delivery or unspent budget.

The fundamental tradeoff: automatic maximizes delivery volume; manual controls costs at potential delivery expense.

How Each Approach Performs

Automatic bidding performance:

• Pros: Maximum delivery, algorithm optimization, minimal management
• Cons: No cost ceiling, may pay premium for some placements
• Best for: New campaigns, testing phases, when volume matters most

Manual bidding performance:

• Pros: Cost predictability, protection against spikes, budget discipline
• Cons: May underdeliver, requires accurate benchmarks, more management
• Best for: Established campaigns with clear cost targets, tight budgets

Real-world comparison example:

Automatic campaign ($100 budget):

• Impressions: 12,000
• Clicks: 180
• CPC: $0.56
• Spent: $100

Manual campaign ($100 budget, $0.40 CPC cap):

• Impressions: 7,000
• Clicks: 90
• CPC: $0.38
• Spent: $68 (could not find enough clicks at $0.40 ceiling)

The automatic campaign delivered more but at higher cost per click. The manual campaign controlled costs but underdelivered.

Key Considerations

• Automatic bidding is default recommendation
• Manual requires benchmark knowledge
• Tight constraints dramatically reduce delivery
• Platform algorithms are generally efficient
• Manual makes sense only with specific requirements
• Test both approaches to compare for your situation

Common Questions

When should musicians switch from automatic to manual?

Switch to manual bidding when:

Clear cost ceiling exists: If cost per follower must not exceed $0.50 for budget reasons, manual cost cap enforces this limit.

Data supports the target: After campaigns establish $0.40 average cost per follower, setting $0.50 cap allows some headroom while preventing outliers.

Efficiency matters more than volume: When building audience over time rather than hitting release deadlines, lower costs may be more important than maximum delivery.

Stay with automatic when:

• Learning what costs should be
• Prioritizing delivery volume
• Running time-sensitive campaigns
• Lacking benchmark data

How do manual bid settings translate to results?

Cost cap example: Setting $0.50 cost per follower means the platform targets this average. Some followers may cost $0.60 while others cost $0.40, averaging near $0.50.

Bid cap example: Setting $5 CPM means no individual impression costs more than $5 per thousand. This is a hard ceiling, not an average target.

Relationship between settings and delivery:

• Cap at average cost: Moderate delivery reduction
• Cap below average: Significant delivery reduction
• Cap well below average: Severe or complete delivery loss

Start manual caps 10-20% above observed averages to maintain delivery while adding protection.

Can automatic and manual bidding be combined?

Campaigns use one bidding strategy, but portfolio approaches combine both:

Automatic campaign: Primary campaign for volume and testing Manual campaign: Secondary campaign with cost controls

Running both simultaneously allows comparison and provides both volume and efficiency data.

Within a single campaign, start automatic to gather benchmarks, then switch to manual if cost control becomes necessary. This sequence provides data for setting appropriate manual limits.

Display advertising through networks like LG Media typically uses fixed pricing models. At $2.50 CPM, there is no bidding complexity. Cost is predetermined, making budget planning straightforward compared to auction-based platforms.

Summary

Automatic bidding maximizes delivery by letting platforms optimize auction bids. Manual bidding controls costs but may reduce delivery volume. Most musicians should start with automatic bidding to gather benchmarks, introducing manual controls only when specific cost constraints require it. The right choice depends on whether volume or efficiency takes priority.