The document discusses 5 ways that AI can be used for online advertising. 1) AI requires good quality data to be effective, while garbage data can undermine results. 2) AI can either optimize campaigns around one single goal like ROAS, or segment campaigns based on product attributes. 3) AI can help activate "long tail" products with little data by gradually increasing their bids. 4) "Turbo campaigns" can use AI to always outbid competitors to dominate product categories. 5) Price differences compared to competitors strongly impact conversions, so bids may need adjustment based on competitors' pricing.

1. Webinar: 29t & 30th of March 2023

2. 5 ways AI works
1.Goodor garbagedata
2.Oneto rule them all,or?
5.Pricedifference
1
2
3
3.Thetail
4.Kingof the hill 4
5

3. Bidbrain is part of Nasdaq listed SpeqtaAB
Who are we behind this webinar?
Google Shopping Experts…
…that saw a problem
…and approached it from a
data and AI perspective

4. 5 ways AI works
1. Good or garbagedata
2.Oneto rule them all,or?
5.Pricedifference
1
2
3
3.Thetail
4.Kingof the hill 4
5

5. Good data
Garbage data
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6. Common mistake: Thinking it is all about bids
1
Quality score:3 Quality score:6 Quality score:10
Bid: €2 Bid: €1.5 Bid: €0.5
Keys to success
Picture
Product title
Levels of data

7. Common mistake: Thinking it is all about bids
1
Quality score:3 Quality score:6 Quality score:10
Bid: €2 Bid: €1.5 Bid: €0.5
Keys to success
Picture
Product title
Levels of data
WINNER

8. Product feed optimisation - Quality data & content
Optimise your producttitles
Addbrand
Use AI to addkeywords to your
titles
Structure example:
Brand -Name of the product –
category (and/orkeyword) – color -
gender -size
1

9. 100%
100%
Levels of data matters
1

10. 1. Check so all mandatory attributes are included in your feed
2. Check your product titles! Use AI to optimise for higher converting
search terms
3. Quality pictures & more data for granular bidding!
To summarise it
1

11. One to
rule them
all… or?
2

12. Bidbrain
one ROAS to rule
them all
…if “R” is Revenue
2

13. Gross Margin
50%
Here willing to
bid higher
10%
More careful
bidding here
2

14. Here is what you cando
ALTERNATIVE 1 - POAS
Profit as conversion value and use POAS (Profit On AdSpend)
for optimising your campaigns
+ Break-even always
+ Based on real-time profit
+ 100% transparent
There are some tools offering this:
● profitmetrics.io
● sniffie.io
2

15. 15
*source: https://profitmetrics.io/cases/grejfreak
2

16. ALTERNATIVE 2 - ROAS on product groups
1. Create ROAS groups with selected products depending on margin
levels
2. Use Article ids, brands, price levels, custom labels for margins etc to
filter out the products
3. Set a separate ROAS goal and budget per campaign
4. Create a custom report to follow the progress
Here is anotheroption
2

17. Men’s clothesAdidas
Men’s clothes own brand
Women’s clothes
Setting it up with different targets
2

18. 1. Use POAS if you can to steer the AI
2. Alternatively use AI tools to set different ROAS per gross margin groups
To summarise it
2

19. The tail
3

20. 20%
Sales
Products
Not activating the tail
3

21. 100%
No clicks = No data = No bidding = No sales
3

22. Tier logic explained - Migrating products upwards
Tier 3 - Little or no data
Tier 2 - Few data
Tier 1 - Good data quality
Gradually build up data, increasing CPC prices
Gather data via clustering of grouped parameters
Optimize based on parameters available
3

23. Cost of Sale
4,0%
(same as prev.)
Sales
+413%
(vs previous 110
days)
White goodscompany
Activating the long tail - Additional bidding & sales
3

24. 1. Use algorithms and AI to activate the tail of the products range
2. Activate = Gather more click data, to increase predictability of AI
3. Pushing products upwards in Tiers = More sales, from more products
To summarise it
3

25. King of the hill
4

26. Impression share = Market visibility
4

27. Not looking at your impression share vs competitors
CVP
C
VOLUME IMPR SHARE
AVG
COS
4

28. Become the King of the hill with turbo campaigns
How itworks
Always bidhigherthan competitors inorderto beKingof the hill
The Turbocampaign modewill continuously check your
impressionshare everyday all day,andif it dropsthe AIwill push
your products to always beontop!
When to useit
● Push specific products(campaign)
● Clearstock
● New product launch (for brandbuilding)
4

29. 1. Strong powerful way to dominate a specific category or niche
2. Always bid X% higher than competition in order to be visible. All the time
3. Do not overuse, if you are not willing to take the risk
To summarise it
4

30. Price
difference
5

31. 5
Pricing vs competition is always changing
● 25% of the products hada 10%higher price than competitors.
● 15% of the products hada 20%higher price than competitors.
● 8%of the products hada 30%higher price than competitors.
● 5%of the products hada 40%higher price than competitors.

32. …but few use this in their bidding for ads!
5

33. Price Benchmark Algo. - Google data
5

34. 1. Price difference strongly affect conversion rate. <10% halves Converstion Rate
2. Either work heavily on product pricing vs competitor OR…
3. Adjust the bid prices accordingly to how your competitors are pricing
To summarise it
5

35. Summarise the 5 ways AI works
1.Goodor garbagedata
2.Oneto rule them all,or?
3.Thetail
4.Kingof thehill
5.Pricedifference

36. Q & A

37. Malin Blomberg | CEOBidbrain
Thank you!