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Automatic Optimization

Automatic Optimization. Limor Nadav – Greenberg | Solution Specialist January 2011. Agenda. Automatic Optimization concept Optimize how? Optimize according to what? Optimize where? Targeted Optimization Discussion Hands on. Automatic Optimization. Implement Switch Marketing video here.

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Automatic Optimization

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  1. Automatic Optimization Limor Nadav – Greenberg | Solution SpecialistJanuary 2011

  2. Agenda • Automatic Optimization concept • Optimize how? • Optimize according to what? • Optimize where? • Targeted Optimization • Discussion • Hands on

  3. Automatic Optimization Implement Switch Marketing video here. (Explains why use Auto Optimization?) Animation if needed Is “Fade - very fast”

  4. Automatic Optimization Concept Nike 6.0, Weight: 33.3% 2000 Clicks Nike T90, Weight: 33.3%, Nike Total, Weight: 33.3% 1000 Clicks 4000 Clicks

  5. Remember Greatland Airlines…? They have several ads directed to each target audience: NY : WA: …

  6. Remember Joe and Greatland Airlines…? Joe wants to optimize the serving within each target audience, so that ads that get a higher rate of clicks will serve more impressions. NY : WA: … Let's see how the optimization mechanism works…

  7. Optimize How? • At first – all impressions are equaly distributed among the ads That is the case until all ads pass the threshold and get the weight calculated for them based on their performance. • Preformance of the ads is measured. • The results of this comparison will dictate the serving of the remaining 90% of the impressions. • After the first optimization - 10% of all impressions are equally distributed among all ads, and used for the next calculation.

  8. Optimize How? Two possible optimization methods: • Better ads play more • Winner takes it all

  9. Optimize How? • Better ads play more Ads are served proportionately to their performance

  10. Optimize How? • Winner takes it all The best performing ad wins all 90% of the remaining imp. • Here Joe will select “Better ads play more”

  11. Which option would you use and when?

  12. Optimize According to What? • You can now optimize based on two metrics together! • …and set their weights! • Joe will pick “Clicks” as the optimization metric

  13. Optimize According to What? Let's take an example: Ad A: (0.2%*80%) + (8%*20%) = 0.0176 Ad B: (0.3%*80%) + (4%*20%) = 0.0104 Ad A is the winning ad!

  14. Optimize According to What? Available Options: • New optimization metric: Dwell Rate • The user will be able to select multiple custom interactions and multiple conversions.

  15. Optimize Where? • Users will now be able to optimize across all placements in a certain Delivery Group! • Useful when there is no real difference between the audiences of different sites. • This will make the optimized serving start faster (this is especially useful when the campaign is targeted). Joe will choose “Entire Delivery Group”

  16. The user will be able to choose between optimizing the ads according to data that is gathered in the specific placement or the whole Delivery Group. Optimization Cross Placements Yahoo 90% 10% B1 A1 Clicks= 500 Clicks= 2000 Ad Group A B MSN Clicks= 5500 Clicks= 4000 10% 90% A2 B2 Clicks= 5000 Clicks= 2000 * We are assuming both ads got the same number of impressions

  17. The user will be able to choose between optimizing the ads according to data that is gathered in the specific placement or the whole Delivery Group. Optimization Cross Placements Yahoo 90% 10% B1 A1 Clicks= 500 Clicks= 2000 Ad Group A B MSN 10% 90% A2 B2 Clicks= 5000 Clicks= 2000 * We are assuming both ads got the same number of impressions

  18. Algorithm Revised • Process is initiated every 2 hours. Threshold: • Is set according to the selected optimization metric. • Set per ad. • Have all ads reached their threshold? Yes No • Calculate ads performance • Assign new weights • Start to collect new data • Ads keep serving according to their current weight.

  19. Available for the following types: Geo Site Keywords Coming up soon…Targeted Optimization

  20. Play Time MM Reach Media Award goes to… Which ad did you like best? Display Ad Display Ad Display Ad

  21. Few Notes… When using automatic optimization: • The delivery group can contain only one instance of each master ad. • You cannot create sub groups. • However, you will be able to create time-based groups with automatic optimization within groups.

  22. Discussion When would you recommend that the advertiser use targeting, and when would you recommend using Targeted Optimization?

  23. Hands On

  24. Thank you!

  25. Appendix What is the threshold for initiating optimized serving? * General rule: the impressions threshold is a function of the optimization metric selected. The lower its expected rate is – the higher the number of minimum impressions it will require.

  26. Appendix What happens when a new ad is added to the Delivery Group? * The threshold of impressions is a fixed number that is set according to the metric the user has selected to optimize according to. In case the ad has acquired 5 events of the specific metric before reaching the number of impressions, it will be considered as if it has passed the threshold.

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