Download - Technical Revolution of Digital Marketing

Technical Revolution of Digital Marketing

Bryan M. Minor, Ph.D.Chief Scientist, Acquisio

Performance Media Platform

Continuous SEM Optimization


Features:

1. Examination and adjustment of Bids in regular intervals many times per day

2. Examination of Budget spend precision many times per day with hyper accurate control

3. Updating of modeling parameters in algorithms on a longer characteristic time scales

4. Auto detection and dealing with anomalies

Results in accelerated learning and optimization

Algorithm Model

• Cruise missile model

• Dynamic Non-linear optimization

• Small steps more often


Problem statement:


• For a fixed Budget for budget period (month)

– With a group of Campaigns (Budget Group)

• Make Daily Budget last whole Day

• Maximum Average CPC per day limit

• Fairly compete Campaigns based on value of Clicks (conversions)

• Maximize Clicks (conversions)


Theoretical ABC graph

C B

A

A

A

minCPC

0 2 4 6 8 100

5

10

15

20

25

30

35

CPC

Cli

cks

day

ABC graph explanation:


• B graph – Daily Budget spent

• C graph – Daily Budget not spent

• A – location of maximum number of Clicks for a fixed Daily Budget obeying constraints

• minCPC – Lowest value of CPC produces Clicks

Constantly searching for Optimal solution


Experimental ABC data #1

ABC Data Analysis


• BBM start: 24 May 2014


Results: X-graphs #1

Start Clicks Start CPC End Clicks End CPC

1,066 $0.51 1,848 $0.27

• BBM start: 26 May 2014




490 $2.07 892 $1.21

• BBM start: 23 Apr 2014




29 $1.24 56 $0.63

• BBM start: 23 Apr 2014




23 $2.08 76 $0.64

CPC Constraint Obedience


Budget Survival


Budget Spend


Spend CPC Constraint Obedience


Conclusions


• ABC theory validated – A exists!

• Continuous updating of Bids produces superior results

• Precise Budget spend control over Budget Period (2%)

• Statistical Significance matters (143 issue)

• Constraint matters

• Ability to deal well with dynamic changes Budgets

Constraints

Creative changes

Google Settings changes

Google algorithm changes