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SEM Performance with Machine Learning

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See how Acquisio uses Machine Learning to improve SEM performance for agencies and advertisers serving clients, large and small.

Credit: presentation given at SMX West, San Jose. March 2017.

Published in: Marketing
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SEM Performance with Machine Learning

  1. 1. SEM Performance with @BethThouin, VP Marketing at Acquisio Machine Learning
  2. 2. We empower campaign managers to thrive in the changing digital economy. We simplify online advertising and optimization with data. Our award-winning machine learning algorithms perform millions of campaign adjustments per day on 300,000 campaigns for hundreds of clients, enabling better advertising tracking, optimization and reporting. AdWords - Facebook - Bing
  3. 3. • What is Machine Learning? • Applying Machine Learning to SEM • Data points • @acquisio Agenda
  4. 4. Machine Learning and AI are disrupting work being done by humans
  5. 5. It's being called "The Fourth Industrial Revolution" First Revolution Steam, water, mechanical production equipment Second Revolution Division of labour, electricity, mass production Third Revolution Electronics, IT, automated production Fourth Revolution Cyber-physical systems
  6. 6. Machines are faster, "smarter" and never tire
  7. 7. ML already delivers better marketing outcomes for advertisers of all sizes
  8. 8. Better campaign performance, even for low budget/volume spends Automated workflows that dramatically improve operating efficiencies Decreased OPEX, Higher customer sat, LTV and lower churn rates
  9. 9. So HOW does ML work with SEM?
  10. 10. 1 Money Management Bid & Budget Management across platforms (Google/Bing/FB/Yahoo), campaigns, devices, geo, time of day, day of week, GDN topics, and GDN placements, RLSA, and Interactions. Learning from each individual advertiser and benchmarking per vertical and even per geo.
  11. 11. 2 Suggestive ‘Don’t make me think’ Suggestions for account audits, keyword selection, ad copy, ad testing, audience segmentation, campaign structure, missed opportunities. These will all ultimately have to be fully automated.
  12. 12. So how much does ML impact SEM?
  13. 13. ML saves campaign managers approx 65%* of management time. Freeing up resources for more important work. *With automation, CMs spend 20 minutes vs 60 minutes per campaign per week.
  14. 14. On average, ML increases clicks by 33%. N = 12,000 accounts running 3 months+ on Acquisio’s Machine Learning technology. March 2017.
  15. 15. On accounts set to optimize for conversions, ML lifts conversions by 100%. N = 3,000 accounts running 3 months+ on Acquisio’s Machine Learning technology. March 2017.
  16. 16. Does size matter?
  17. 17. Smaller accounts see better LTV improvements on ML, but larger accounts are more likely to see bigger budget attainment improvements. N = 36,000 accounts running 3 months+ on Acquisio. March 2017.
  18. 18. Adwords = 34.6% improvement Bing Ads = 16% improvement LTV / ARPU
  19. 19. 2.5X more likely to hit budget targets on AdWords and 7X more likely on Bing Ads. *<500$ monthly ad spend ML-based campaign automation vs rule-based campaign automation 4X more likely to hit budget targets on AdWords and 15X more likely on Bing Ads. *>1500$ monthly ad spend
  20. 20. We were able to increase margins from 10 - 15% to 20 - 25% using ML automation. We use machines and humans in tandem to better service customers. Machines perform complex tasks around bidding, budget management and optimization. Account managers are able to focus on things like generating ad copy, landing pages, keywords and otherwise applying their industry knowledge to service customers. ~ Chris Hanson, 3GEngagement “
  21. 21. What does the future hold for advertisers and agencies? Automation for every routine campaign management task and more… such as keyword selection, audience optimization, even writing ad copy and customer service.
  22. 22. • @BethThouin • VP Marketing @Acquisio • bthouin@acquisio.com Thank you!

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