Before you launch a new native advertising campaign, ideally, you would want to know how much it would cost to run.

Generally, a native advertising campaign costs anywhere between $1,000 to $1,000,000. The cost is defined by several factors: publishers’ inventory and their domain authority, target audience, and the level of competition for traffic in the desired target geo.

Native advertising is priced by CPM or CPC. If you choose the Cost per Mile (CPM) model, you pay a certain price for 1000 ad impressions. If you choose the Cost per Click (CPC) model, you pay a publisher every time an ad is clicked. Therefore, you can choose how you pay for an ad, whether it is when a user sees your advertisement or when they click on it.

Let’s dive deeper into how you can plan your budget and where to find reliable cost estimates for your campaign.

Traffic insights, the AI-powered tool to estimate campaign costs

At MGID, there are two ways to easily find reliable cost estimates. Your MGID account manager is one of them. Your account manager understands the market and knows how much similar native campaigns cost. Simply provide them with the details of your upcoming campaign and they’ll give you the approximate budget.

The second method is to use MGID’s AI-powered Traffic Insights tool. This tool shows what MGID can do for you: in terms of traffic, clicks, how much it would cost, the best-performing geo, as well as the competition level in each country.

To access this tool, click on the Traffic Insights button on the Adding new campaign page.

Select the target devices (All/Desktop/Mobile & Tablets) and the campaign type (Product promotion or Content promotion).

Then, the Traffic insights tool displays the minimal suggested CPC for different geos and sorts by the number of daily impressions. To view a specific country, enter the desired geo in the Find a country field.

By clicking the Add campaign button in the Actions column, you can start your campaign right away with the selected targeting. Once you start your campaign, we recommend a 10-30% higher CPC than suggested in order to test more publishers and find the most efficient traffic sources for your campaign.

Test campaign budgets and CPCs by geos

Each geo has its own recommended CPC, which is dependent on competition, the market supply, and demand forces.

The above figure displays the average bids for LATAM/Asia; Europe; and USA, CA, AU, UK. However, you can always consult your account manager about better fits for your desired offer/geo combination.

In cases of a limited budget or a desire for faster results, the best option is to choose a geo with a lower CPC. This enables you to reach a bigger audience for the same value.

The average test budget is roughly calculated as 10xCPA — depending on the category, of course. However, this doesn’t mean that you won’t see results right away. This test budget should gather enough data for optimization and evaluate if the offer has growth potential.

While CPC is an important metric, try not to focus too much on it. For advertisers, we recommend shifting the focus to conversions and their cost. Always analyze which traffic sources have a higher conversion level, and use rule-based optimization, which focuses on the best performing sources and bids down on the ones that don’t perform as well.

Final thoughts

There are two ways to estimate the expected campaign costs. One being an MGID account manager. They are your best friend when it comes to providing expected campaign costs. MGID account managers know the market, the competition level for different geos and expected CPCs. With an account manager, your campaign is always in good hands.

Another way to find the recommended CPC, the number of impressions and clicks for your upcoming campaign is by using MGID’s Traffic insights tool. There you can find expected targets for different geos and estimate the native advertising costs.