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The new FanBox Ad system


The new Ad system is live!
 

 

I will do my best to explain how it works here:

 

·        You only pay when someone clicks from your Ad to your post. You are never charged when someone sees your Ad but doesn’t click. 

 

·        The cost per click (CPC) is determined by a bid system, starting at one penny per click ($0.01).  

-- And now you only need $1 to start using Ads (down from $3)

-- Your daily budget can be set to only $1 per day, down from $3.

 

·        Each Search Term (tag) that is used to target your Ad, has its own CPC price – starting at $0.01.

 

·        The CPC price is set based on an auction approach – meaning that  the price goes up and down based on supply and demand.

 

·        When a reader signs into FanBox, Ads that best match her interests are served to her. If she’s interested in “Soccer”, the Soccer Ads with the best click rates are served first.

 

·        There are 2 modes: Automatic and Manual.

 

·        In Manual Mode, you can set your Maximum Bid Price to ensure that, if the CPC price goes above a certain level, your Ad is not shown so that you are not charged.

 

·        In Automatic Mode, FanBox ensures that your Ad is served at the lowest price available.

 

·        When someone clicks on your Ad (and goes to your post) you generate earnings.

 

·        How much you generate is based on the CPC price for the Search Term (tag).

 

·        Here’s how earnings are calculated: All the money paid into the pool for the Search Term “Soccer” is added up, and 100% of that amount is returned to Advertisers that received (and paid for) clicks from the Search Term “Soccer”.

 

·        How much each click earns is based on Engagement (time). In other words, the system looks at how much total time all users that clicked from “Soccer” spent in all the posts, and gives each click that same proportion of the payout pool for that Search Term.


·        This means that 100% of Ad Revenue is returned to Advertisers every day.

 

·        You can make more than you spent for each click, or less, depending on how your post engages readers compared to your competition. IE: Some people will make an instant profit on a click; others will not.

 

·        For example, let’s say the CPC price today for “Soccer” is $1.00. Some Advertisers might make $0.75 per click, while others will make $1.25.  Again, the whole pool (100% of money that goes to Ads) goes back to the Advertisers – based on the relative quality of their posts as measured by engagement.

 

·        Regardless of whether they made an instant profit, of course, all Advertisers can get Fans, Followers and Friends from those clickers – which will later contribute to their earnings.

 

·        Earnings will now need to mature for 30 days before being spent on Ads.

 

·        For example, Earnings generated in May are available to be invested in Ads on June 30.

 

·        This intent of this is to stop the “Churn and Burn” casino effect that some people have been using FanBox Ads for – and will give everyone a chance to use FanBox Ads to promote their posts.

 

·        If a reader is interested in “Soccer” but there are no paid Ads to show her about “Soccer”, she will be shown Ads about “Soccer” for FREE (no cost to the Advertiser).

 

·        In other words, the system will serve many of your Ads for FREE every day – even if those Ads are out of money, have their campaign dates out of range, or are paused.

 

·        You will not generate any earnings from those users instantly when they click to your posts (if your Ad was paused, out of date range or out of money).

 

·        However, you will likely get tons of fans, friends and followers from this approach for FREE – which you will generate earnings from in the future.

 

·        So it makes sense to launch Ads for as many Search Terms (tags) as possible, even if you don’t want to pay for them – because they might get served FOR FREE and build your fans, followers and friends.

 

My opinion is that this system and approach will more strongly benefit Advertisers and Bloggers because:

 

 It gives more control and visibility to the Advertiser – if they want it – by allowing them to only pay if the user clicks.

 

 You will still be able to see your Ad’s performance, as well as what your Max Bid was -- if you had one set -- as well as what CPC price it was actually served at, on average.

 

 The price is set on a bid system BY SEARCH TERM (TAG) – automatically ensuring that Advertisers get the lowest price.

 

 Earnings go up and down with the CPC price – so a higher bid price is not a bad thing – especially if your blog posts are more engaging than that of your competitors.

 

Readers can see a lot more Ads that relate to their interests, because all Ads are served to them, not just the ones that are “paid”. (All Paid Ads are served first; followed by Free Ads). This makes the site more interesting and engaging for them, causing them to stick around more and become more interested in both FanBox and your blogs.

 

Your posts and Ads will get a lot more action (visitors) – even if you’re not spending a penny on Ads – depending on the quantity and quality of your Ads. In other words, all your Ads have the opportunity to be served to users (that match the Search Terms of your Ads) depending on their click rates.

 

I believe that the best strategy for you is to launch lots of Ads across many relevant Search Terms; setting their pricing Mode to “Automatic”.

 

Just remember to ensure that the Search Terms (tags) you put in your Ads must be highly relevant to your posts, or the system will “punish” both your Ad as well as your post. IE: Only use Search Terms that really explain what your post is about.

 

As with all new software, the system will at first have its glitches! If you want to be a pioneer and be one of the first to figure it out, have fun with it! If you’d rather not deal with the issues and bugs that will undoubtedly be there, definitely feel free to hold off (pause your Ads) until “word on the street” is that the issues have been smoothed out.

 

More to come soon – just wanted to get something out to you quickly but I am sure that I am missing some stuff and so I will edit this post as I think of what I forgot to tell you.

1352 Comments

good one

23 months ago

nice well defined

8 months ago

Such a helpful blog.. Great sharing! Thanks for writing this blog!

7 months ago

Thats really great Johnny ! Thanks for the Great post ! I hope it will really help many !

23 months ago

Thanks for the info JC !

7 months ago

Thanx for this post JC. I have been unclear about this ADD Changed. thank you.

23 months ago

You have very good info. here, this is a must read for all fanbox associates

23 months ago

I was thinking the same thing!

9 months ago

Thanks for the info! Good to know!

23 months ago

Awesome!!!! Makes complete sense!!

23 months ago

Good information, Thanks!!!

23 months ago

Hi Fans Please read my blog - about Zegolia- A new program to Earn money through Online Advertisement shares.
http://posts.fanbox.com/qxgs5

1 month ago

Great Post! I have a question regarding bidding on ads. Let's say Jenny Lee, TK and I bid on the tag "chihuahua" and I bid .1 cent per click.
Jenny Lee bids 50 cents a click and TK lays down $1 per click.
Wouldn't TK's ads get preference for showing due to a higher bid?

23 months ago

wow i have learned from this thanks JC

23 months ago

thnx ;)

23 months ago

Thank You Johnny for your info all about Ads. Thank you for the updates.

23 months ago

Hi Fans Please read my blog - about Zegolia- A new program to Earn money through Online Advertisement shares.
http://posts.fanbox.com/qxgs5

1 month ago

Great question JoLynn.

In your example, all 3 of you will get the same price, and the sorting order (which determines whose Ad will be served first) is based on the Click Rates of your Ads for those tags.

So, using your example, let's say that the CPC (Cost Per Click) price ends up being $0.05 (based on the popularity of the tag), and your Ad's Click Rate for that tag is 1.5%, TK's is 1% and Jenny Lee's is 3%.

Your Ad won't be served, because in your example you set a Max Bid on it at $0.01 (1 cent) and it ended up being served to everyone at $0.05.

Jenny Lee and TK's Ads will be served, because they both had a Max Bid that was above the $0.05 CPC price that the tag ended up having for the day.

Jenny's Lee's Ad will be served first, because her Click Rate was 3% -- better than TK's Click Rate of 1%.

That's why the best thing to do, in my opinion, is to simply choose "Automatic Mode" -- where you don't set a Max Bid price -- so your Ad will never be blocked based on its Max Bid price being set to lower than the current CPC price.

Remember that your Ads will always be served at the same price everyone else gets for each tag, and as its price goes up, so does its earning potential.

No matter how good your post is, if the CPC price for its tag is only $0.01, your earning potential on it is limited because the daily pool for that tag is only a small amount of money. As demand for Ads with that tag goes up, so does its CPC price -- and your earning potential.

So, the more people that participate in Ads, the higher the earning potential for everyone -- and the better the system gets for readers (users) because they'll see more high quality Ads and discover more posts that match their interests.

23 months ago

What if an ad can be shown for two different tags? Which tag will be the base for pricing the ad?

8 months ago

I have the same question as Tivadar have

1 month ago

Navankur: the price of the click will be the total sum of all the tags' costs

1 month ago

VERY NICE TIPS JC..THANKS

23 months ago

thats nice

23 months ago

Thank you so much for the info Mr. JC!!

23 months ago

Thank you for this blog article JC. I am still a little confused to how this is going to work. Are we still allowed to use the earnings in our Fan Box bank to promote these CPC ad campaigns ? If not, this can become very problematic for those which are still waiting to receive their payments in the mail.

What happens when they try to debit your non-Fan Box accounts and the money is just not going to be there? I know that I have set limitations on all my personal bank accounts...even the one which vip draws out my monthly vip subscription from. If the money is not in my account to cover the debit...or charge back...It just will not happen.

FanBox needs to fix the way they payout earning if they are going this route, because of the long wait times as I have seen since starting here for those cashing out. It will make it difficult at best to make income or profit if your associates go bust in their bank accounts in the long run...Not everyone can afford to do things this way....

23 months ago

Very informative

23 months ago

nice info JC...thanks!

23 months ago

usefull......

23 months ago

Thanks Johnny for the information.

23 months ago

Thanks so much for the fast answer - I wanted to make sure I was understanding that correctly! You rock!

23 months ago

Thank you for a bit of clarity on this issue. I am still a bit foggy in the area of how to post my ads if there is zero money in the FB bank for ads. I submitted two ads, but since I only use money in the FB bank, my ads are not being submitted.

23 months ago

this is really good for the advertiser.

23 months ago

Michael:

Yes, as I detailed in the post above, you can still use your earnings in your bank for your Ads, but those earnings will have to mature for 30 days after the month you earned them in.

For example (again, as I detailed in the post above) for all the money you earned in May, you can use those funds for Ads starting on June 30.

You bring up a great point about needing to find a way to get your Cash Outs to you faster. We are moving on getting PayPal live as soon as possible -- I am waiting for the exact launch date even as I type this. I will announce the launch date for PayPal later today.

Jan, that is correct: If you have less than one dollar in your FB Bank (or none of your earnings have matured at least 30 days after the month they were earned) AND you don't have a credit card on file, you cannot post new Ads.

23 months ago

Johnny, Thank you for the helpful information... It will definitely be a new adventure for us all in the FanBox blogging community!!! @ JoLynn... awesome question, for me helped to clear up some of the same questions I had, Thanks! :)

23 months ago

yes, very informative. thanks for explaining in such detail.

23 months ago

Thanks JC for clarifying this! I thought that was what it meant but I just wanted to make sure.

23 months ago

thanks 4 ur contribution

23 months ago

Thank you! It's good to know that we will not be charged every time our ad is displayed but ONLY every time it is clicked.

17 days ago

Thanks for clarification of the new ads system

23 months ago

I love the new Ad system!!! I was wondering why I was seeing some of my old ads that have been paused. Thanks for the clarification!!! :)

23 months ago

Wonderful Explained Johnny, i am looking forward for your new post.

Yes ads Are great , you expose your blog to much more readers !
Instead to have the blog stuck in nthe fanboxes section , TAKE IT OUT and expose it with this opportunity of a NEW SYSYEM !

Wonderful news Johnny!!

23 months ago

thanks johnny try touse but my advertisement still pending

23 months ago

Yay! This is going to be great. Thank you again Fanbox for constantly innovating the site...

23 months ago

gread
MrJhonny

23 months ago

does this mean you won't earn any money if you don't spend on ads?

23 months ago

Hi Zoe! Yes, your Ads that are paused, out of money or have their time frame expired can still be served, the reasons for which I mention in the post above.

Asnah, I don't understand your comment because of course I am not sure what the current approval status of any Ad is at any given time; contact customer or vip service if you are concerned (or better yet stay patient and it will be approved/rejected shortly).

Brian: Nothing relating to your non-Ads earnings is changing. IE: You CAN still earn if you don't spend on Ads.

23 months ago

Great! I like it!

23 months ago

great one !!!!!!!!

22 months ago

Thanks, good to know ......

22 months ago

Raye, because for some reason they are sending them to you :-) FanBox doesn't choose who sends who friend requests so just click keep as a friend and go from there :-) Have an awesomely blessed day!

22 months ago

Raye, not sure... Must suck... Sort of like people leaving random questions in topic-specific blogs, huh? ;)

22 months ago

lol I meant to write keep as a "fan" but JC you made me bust!!

22 months ago

Hey johnny how will this effect the VIP bloggers I went VIP last month and am enjoying that I am however now paying for a ad if I post one and am planning on reopening one of my ads tonight.
Great info though and I am going to play with it even I don't see your response

22 months ago