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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

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

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Continuous Optimization Of SEM Performance By Bryan Minor

  1. 1. Continuous Optimization of SEM Performance SMX Advanced, Seattle Bryan M. Minor, Ph.D. Chief Scientist, Acquisio Performance Media Platform
  2. 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. 3. Algorithm Model • Cruise missile model • Dynamic Non-linear optimization • Small steps more often Performance Media Platform
  4. 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. 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. 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. 7. Performance Media Platform Experimental ABC data #1
  8. 8. Performance Media Platform Experimental ABC data #2
  9. 9. Performance Media Platform Experimental ABC data #3
  10. 10. Performance Media Platform Experimental ABC data #4 – many Budgets
  11. 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. 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. 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. 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. 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

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