Introducing NexTag Tiered Pricing and Holiday Rate Increases
The breakdown is extremely thorough, and we’ll go through it in a moment. However, what you should know is that you’ll pay less for clicks on lower-priced products, and more for clicks on your higher-priced products.
What NexTag believes this will do is allow you to list more products and bid more for valuable traffic. These changes are not voluntary. The only way you can avoid abiding by the new rate changes is to suspend or terminate your account. By now the changes have already gone into effect.
So, What’s That Mean For You?
Well, for starters, if you’re currently bidding the minimum for any product, those bids will be adjusted (up or down) to the new minimum rates based on the appropriate tier of your product. You’ll have to manually adjust your bids if you want to bid above the new minimum rates.
As far as products where you bid above the minimum, here’s the breakdown:
If your bid is above the current minimum but below the new minimum, you’ll be adjusted to the new minimum bid. For price tiers where the new minimum is equal to or higher than the current minimum (and your current bid is higher than the new minimum rate) your bid won’t change. Lastly, for price tiers where the new minimum is lower than the current minimum and your current non-minimum bid is above the new rate, your bid will be reduced to the new minimum CPC.
NexTag Holiday Surcharges
In addition to the new rate changes, NexTag’s annual holiday surcharges have gone into effect, and run from Monday, October 14 to Sunday, January 5, 2014. The surcharge will be as follows:
- Computer products – 15%
- Electronics – 25%
- Baby products – 35%
- Clothing and accessories – 35%
- Home and garden – either 25% or 35%
- More categories – 15% through 35%
Glimpse Into The New Rates
The new tiered pricing by category breakdown is rather specific. You can see the entire listing here. However, to get an idea of what you’re dealing with now, here’s an overview:
- 3 tiers – There is a new three-tier system. Depending on your products and their pricing, you could fall into any of the three tiers. For example, a computer monitor that costs between $300 and $649.99 falls into tier 2 with a minimum CPC of $.80, while a baby carrier that costs more than $140 has a minimum CPC of $.60 and falls under tier 3.
- Travel related products are less complicated. Car rental comes with a minimum CPC of $.30, flights have a minimum CPC of $.20 and hotels have a minimum CPC of $1.00.
Confused, Unsure or Wondering if You Have to Change Your Strategy?
You’re not alone. Any shift in an existing pricing strategy can be jarring. What is certain is that this is the perfect (and necessary) time to take another look at your strategy with NexTag. What might have worked last year likely won’t be as effective with the new changes.
NexTag has made these changes (it claims) for your benefit, and while that may not be entirely true, you can turn it toward your favor. But how? It’s all about taking a look at your products, their popularity on NexTag, and the (new) costs you’ll have to incur per click for these products. You could do one of three things:
- Do nothing and let the changes take effect without your strategizing. This certainly will have a negative impact on your ROI.
- Take on the job yourself of determining how best to implement changes. Yes, it can be done but the reality is this is a tall task to take on.
- Work with ecommerce strategists who know the inner-workings of your industry and NexTag, so that you can enjoy the best results from this change without your having to invest much time or effort on your part.
Now is the perfect time to revisit your NexTag strategy. OperationROI can help. Call us at 1-888-277-5429 or fill out our contact form to turn this new pricing change into your advantage.