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