Delivery Models Overview
With one single line item, Delivery Models allow you to finely control the distribution of your programmatic ads separately from the prices you bid for those ads. This unique capability dynamically shifts the budget according to your instructions while ensuring full delivery. Together with Beeswax's flexible suite of Bring-Your-Own-Algorithm (BYOA) tools, Delivery Models unlocks a whole new dimension of optimization, performance, and efficiency.
The following examples help to demonstrate how Delivery Models can be utilized as well as break down some of their possible use cases.
- You need to deliver a campaign in full with $10,000, and pace evenly at a flat $10 CPM.
- Your company has unique access to its own ‘owned and operated (O&O) supply sources, so you ideally want to maximize delivery on these sites/apps.
- As a secondary option, you also have a second tier of inventory via a set of deal IDs with partner sites.
- Finally, you want to use the open exchange, but only if required and preferably as little as possible.
In many platforms this setup would entail 3 separate line items with configurations similar to those pictured below:
|Line Item||Targeting||Budget||Bid Price|
The problem with this approach is if you do not have enough owned and operated or deal inventory to deliver against, those sub-budgets will underdeliver against the important overall budget.
How do Beeswax Delivery Models solve the problem?
With Beeswax Delivery Models, this issue can be solved with a single line item:
|Line Item||Targeting||Budget||Bid Price|
|1||O&O and Other Deals via Passthrough Deals, Open Exchange||$10,000||$10|
This line item is then mapped to a separate object called a ‘Delivery Model’ which expresses each component of targeting as a numeric ‘value’.
|O&O Deal ID list||10|
|Other Deal ID list||8|
Beeswax will then use these to create a proportional percentage weighting and a corresponding target budget based on how you have valued your targeting sub-sets.
|O&O Deal ID List||50%||$5,000|
|Other Deal ID List||40%||$4,000|
Beeswax will intelligently pace against each Target Budget and try to deliver the overall budget. If Beeswax pacing determines there is not enough supply to fulfil a given weighted inventory (i.e. O&O) then it will dynamically reallocate the budget to subsequent criteria (i.e. Other Deals), opting to allocate more to rows with a higher weighting.
Our system will continue to iterate through this dynamic allocation of budget every hour (for daily pacing) or every six hours (lifetime pacing) until all of the budget is spent.
In a scenario where supply was not able to match the required demand, one possible outcome may look like this:
In this example, there was not enough O&O or Other Deals inventory to fulfil the total target budget. Therefore the system reallocated more budget to the Open Exchange over time to ensure the full delivery of the $10,000 budget.
Use Case: Optimizing towards a secondary metric
You may wish to use the VCR Optimization w/ Pacing bidding strategy to optimize to a primary KPI of Video Completes. However, your client also cares about CTR as a secondary KPI. In order to shift the delivery to sites with higher CTR without compromising the VCR goal, you can use Delivery Models to weight the budget accordingly:
|INCLUDE List of sites with high CTR||7|
|INCLUDE list of sites with medium CTR||4|
|INCLUDE list of sites with low CTR, but which are still desirable for the brand goals||2|
Use Case: Direct Response
Delivery Models are valuable when used on direct response campaigns. A standard approach to a direct response campaign may over-allocate "optimized" spend on less desirable inventory simply because there is far more of it. The net effect is that increasing the budget of an optimized campaign will often reduce its effectiveness. We need a simple method of restricting budget on a less performant inventory whilst weighting towards performant inventory.
Consider the chart below-showing CPA performance and impression volume by site with an average CPA of around $8.00. While you're hitting your KPI and you are properly evaluating the conversion probabilities, you are still serving far more impressions on certain sites which brings your average up. You can improve performance by limiting the amount of budget spent on delivery against these larger sites and pushing more to the smaller but better-performing ones.
Use of the Delivery Models feature is already included in your Beeswax contract, so can be used at no additional cost. You can find out more on how to get started and how to create a Delivery Model here.
You can also find our Delivery Model FAQs here.