Bid-Shading Calculator
What should you bid in a first-price lead auction to maximize expected profit, given what the lead is worth and how competitors bid?
Enter today's budget and spend so far. The calculator projects when the budget runs out at the current pace and suggests a bid multiplier that spreads the rest evenly over the remaining hours.
Red: current pace. Blue: suggested pace.
This simplified model assumes lead volume is flat across the remaining hours and rises with the bid at a fixed elasticity of 1.5, and it caps the multiplier between 0.5× and 1.5×. Real pacing systems use an hourly volume curve and adjust the multiplier continuously.
If a daily lead budget runs out by mid-afternoon, you never see the leads that arrive later in the day. This calculator takes your budget, spend so far, the hour and your current buying rate, projects when the budget runs out, and suggests a bid multiplier that spreads what is left evenly over the remaining hours. Use it when you are running ahead of or behind plan and want a measured adjustment rather than a hard stop.
Current spend rate is leads per hour times cost per lead, and the remaining budget divided by that rate gives the run-out time. The even pace is the remaining budget divided by the hours left in the day. The model assumes lead volume rises with the bid at a fixed elasticity of 1.5 and cost per lead scales with the bid, so spend rate scales with the multiplier to the power 2.5. The suggested multiplier is capped between 0.5× and 1.5×.
What should you bid in a first-price lead auction to maximize expected profit, given what the lead is worth and how competitors bid?
Given how acceptance falls as price rises, what price (or reserve floor) maximizes profit per lead?
What is a minute of response time worth when contact rates decay the longer a lead waits?