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Continuous Optimization Of SEM Performance By Bryan Minor
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Continuous Optimization Of SEM Performance By Bryan Minor

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SMX Advanced 2014 Session #SMX #11B - The Mad Scientists Of Paid Search - Continuous Optimization Of SEM Performance By Bryan Minor @Bryanminorphd Of Acquisio …

SMX Advanced 2014 Session #SMX #11B - The Mad Scientists Of Paid Search - Continuous Optimization Of SEM Performance By Bryan Minor @Bryanminorphd Of Acquisio

Read more on SEM at http://searchengineland.com

Published in: Marketing, Technology

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  • 1. Continuous Optimization of SEM Performance SMX Advanced, Seattle Bryan M. Minor, Ph.D. Chief Scientist, Acquisio Performance Media Platform
  • 2. Continuous SEM Optimization Performance Media Platform Features: • Examination and adjustment of Bids in regular intervals many times per day • Examination of Budget spend precision many times per day with hyper accurate control • Updating of modeling parameters in algorithms on a longer characteristic time scales • Auto detection and dealing with anomalies Results in accelerated learning and optimization
  • 3. Algorithm Model • Cruise missile model • Dynamic Non-linear optimization • Small steps more often Performance Media Platform
  • 4. Problem statement: Performance Media Platform • For a fixed Budget for budget period (month) • Maximize Clicks (conversions) • With a group of Campaigns (Budget Group) • Fairly compete Campaigns based on value of Clicks (conversions) • Make Daily Budget last whole Day
  • 5. Performance Media Platform Theoretical ABC graph C B A A A minCPC 0 2 4 6 8 10 0 5 10 15 20 25 30 35 CPC Clicksday
  • 6. ABC graph explanation: Performance Media Platform • 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
  • 7. Performance Media Platform Experimental ABC data #1
  • 8. Performance Media Platform Experimental ABC data #2
  • 9. Performance Media Platform Experimental ABC data #3
  • 10. Performance Media Platform Experimental ABC data #4 – many Budgets
  • 11. • BBM start: 24 May 2014 Performance Media Platform Results: X-graphs #1 Start Clicks Start CPC End Clicks End CPC 1,066 $0.51 1,848 $0.27
  • 12. • BBM start: 26 May 2014 Performance Media Platform Results: X-graphs #2 Start Clicks Start CPC End Clicks End CPC 490 $2.07 892 $1.21
  • 13. • BBM start: 23 Apr 2014 Performance Media Platform Results: X-graphs #3 Start Clicks Start CPC End Clicks End CPC 29 $1.24 56 $0.63
  • 14. • BBM start: 23 Apr 2014 Performance Media Platform Results: X-graphs #4 Start Clicks Start CPC End Clicks End CPC 23 $2.08 76 $0.64
  • 15. Conclusions Performance Media Platform • ABC theory validated – A exists! • Continuous updating of Bids produces superior results • Precise Budget spend control over Budget Period (2%) • Ability to deal well with dynamic changes  Budgets  Constraints  Creative changes  Google Settings changes  Google algorithm changes