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© 2010 MediaMind Technologies Inc. | All rights reserved
Limor Nadav – Greenberg | Solution Specialist
January 2011
Automatic Optimization
© 2010 MediaMind Technologies Inc. | All rights reserved
▸ Automatic Optimization concept
▸ Optimize how?
▸ Optimize according to what?
▸ Optimize where?
▸ Targeted Optimization
▸ Discussion
▸ Hands on
Agenda
© 2010 MediaMind Technologies Inc. | All rights reserved
Automatic Optimization
Implement Switch Marketing video here.
(Explains why use Auto Optimization?)
© 2010 MediaMind Technologies Inc. | All rights reserved
Automatic Optimization Concept
Nike Total, Weight: 33.3%Nike T90, Weight: 33.3%,Nike 6.0, Weight: 33.3%
1000 Clicks2000 Clicks
4000 Clicks
01000200030004000 Nike T90
Nike 6.0Nike Total
© 2010 MediaMind Technologies Inc. | All rights reserved
Remember Greatland Airlines…?
They have several ads directed to each target audience:
NY :
WA:
…
© 2010 MediaMind Technologies Inc. | All rights reserved
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…
© 2010 MediaMind Technologies Inc. | All rights reserved
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.
© 2010 MediaMind Technologies Inc. | All rights reserved
Optimize How?
Two possible optimization methods:
Better ads play more
Winner takes it all
© 2010 MediaMind Technologies Inc. | All rights reserved
Optimize How?
▸ Better ads play more
Ads are served proportionately to their performanceSeries1
15%
25%
50%
90% Impressions
Series1
3.3% 3.3% 3.3%
10% Impressions
© 2010 MediaMind Technologies Inc. | All rights reserved
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”
Series1
90%
90% Impressions
Series1
3.3% 3.3% 3.3%
10% Impressions
© 2010 MediaMind Technologies Inc. | All rights reserved© 2010 MediaMind Technologies Inc. | All rights reserved
Which option would you use and when?
© 2010 MediaMind Technologies Inc. | All rights reserved
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
© 2010 MediaMind Technologies Inc. | All rights reserved
Optimize According to What?
Let's take an example:
Ad A: (0.2%*80%) + (8%*20%) = 0.0176Ad B: (0.3%*80%) + (4%*20%) = 0.0104
Ad A is the winning ad!
Clicks rate Dwell rate
Ad A 0.2% 8%
Ad B 0.3% 4%
© 2010 MediaMind Technologies Inc. | All rights reserved
Optimize According to What?
Available Options:
New optimization metric: Dwell Rate
The user will be able to select multiple custom interactions and multiple conversions.
© 2010 MediaMind Technologies Inc. | All rights reserved
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”
© 2010 MediaMind Technologies Inc. | All rights reserved
Optimization Cross Placements
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.
Ad Group
Yahoo
MSN
A B
A1 B1
A2 B2
Clicks= 2000 Clicks= 500
Clicks= 2000 Clicks= 5000
Clicks= 4000 Clicks= 5500
90%10%
90%10%
* We are assuming both ads got the same number of impressions
© 2010 MediaMind Technologies Inc. | All rights reserved
Optimization Cross Placements
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.
Ad Group
Yahoo
MSN
A B
A1 B1
A2 B2
Clicks= 2000 Clicks= 500
Clicks= 2000 Clicks= 5000
90% 10%
90%10%
* We are assuming both ads got the same number of impressions
© 2010 MediaMind Technologies Inc. | All rights reserved
Algorithm Revised
• Process is initiated every 2 hours.
• Have all ads reached their threshold?
• Calculate ads performance• Assign new weights• Start to collect new data
Yes
Ads keep serving according to their current weight.
No
Threshold:• Is set according to the selected optimization metric.• Set per ad.
© 2010 MediaMind Technologies Inc. | All rights reserved
Coming up soon…Targeted Optimization
Available for the following types: Geo
Site Keywords
© 2010 MediaMind Technologies Inc. | All rights reserved
Play Time
MM Reach Media Award goes to…
Which ad did you like best?
Display AdDisplay AdDisplay Ad
© 2010 MediaMind Technologies Inc. | All rights reserved
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.
© 2010 MediaMind Technologies Inc. | All rights reserved
Discussion
When would you recommend that the advertiser use targeting, and when would you recommend using Targeted Optimization?
© 2010 MediaMind Technologies Inc. | All rights reserved
Hands On
© 2010 MediaMind Technologies Inc. | All rights reserved
Thank you!
© 2010 MediaMind Technologies Inc. | All rights reserved
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.
Metric Expected Value Min Threshold (actions) (OR) Min ImpressionsClicks 0.1%-0.3% 5 4,000 Interactions 0.5%-15% 5 797 Specific Interaction 0.1%-15% 5 4,000 Dwell 2%-15% 5 196 Conversion 0.01%-2% 5 4,000 Specific Conversion 0.01%-2% 5 4,000
© 2010 MediaMind Technologies Inc. | All rights reserved
AppendixWhat 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.
Step Details Rate of impressions served1 The user will create a delivery group containing ads and define the
optimization settings for it.
The ads will be served evenly until each of the ads will pass the threshold of impressions (*).
10% of imp.Ad A – 5%Ad B – 5%
90% of imp.Ad A – 45%Ad B – 45%
2 Once all ads have passed the threshold, they would get the appropriate weights, according to their performance. If the optimization method is “Winner takes it all” – then only the best one will be served. (On the right - example for “Winner takes it all”).
10% of imp.Ad A – 5%Ad B – 5%
90% of imp.Ad A – 90%Ad B – 0%
3 In case a new ad is added to the delivery group, it will cause all of the ads to be served evenly. Once the new ad passes the threshold, the optimization process would be triggered and the weight of the ads would be recalculated. No performance data would be lost for the other ads that were already optimized.
10% of imp.Ad A – 3.3%Ad B – 3.3%Ad C – 3.3%
90% of impAd A – 60%Ad B – 0%Ad C – 30%
4 Once the new ad passes the threshold, it would get its weight according to its performance.
10% of imp.Ad A – 3.3%Ad B – 3.3%Ad C – 3.3%
90% of impAd A – 90%Ad B – 0%Ad C – 0%