Microsoft Confidential

What You Need To Know About Bing Ads

Optimization Lars Hirsch, Group Program Manager

Advertiser Analytics

Microsoft Confidential

Microsoft Confidential

Optimization: Query Trends

Due to the variation in user intent, query volume varies across different times of the day, day of week and across different devices

Objectives:

Provide advertisers a better understanding of search behavior and ROI

Advertiser Benefit:

Advertisers will learn the optimal actions to take based on device and time of day

Microsoft Confidential Microsoft Confidential

Query Trend Across Devices on Weekdays vs. Weekends

0

20000

40000

60000

80000

100000

120000

140000

160000

0

100000

200000

300000

400000

500000

600000

700000

12 AM 3 AM 6 AM 9 AM 12 PM 3 PM 6 PM 9 PM

Weekends

PC Mobile Tablet

0

100000

200000

300000

400000

500000

600000

0

500000

1000000

1500000

2000000

2500000

3000000

12 AM 3 AM 6 AM 9 AM 12 PM 3 PM 6 PM 9 PM

Weekdays

PC Mobile Tablet

Microsoft Confidential Microsoft Confidential

T1 (Early Morning): 6AM – 8AM

T2 (Morning Commute): 8AM – 9AM

T3 (Morning Work Hours): 9AM – 12PM

T4 (Lunch): 12PM – 1PM

T5 (Afternoon Work Hours): 1PM – 5PM

T6 (Evening Commute): 5PM – 6PM

T7 (Evening): 6PM – 9PM

T8 (Night): 9PM – 12AM

T9 (Late Night): 12AM – 6AM

Bucketing Hours by Activities

Microsoft Confidential Microsoft Confidential

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

CP

A in

$

CPA by Hour buckets by Device

PC Mobile Tablet

CPA decreases throughout the day

Microsoft Confidential Microsoft Confidential

Retail: PC volume, CTR spikes at lunch, Tablet at night

0

5

10

15

20

25

Clic

ks (

Tho

usa

nd

s)

Clicks by Device

PC Mobile Tablet

0%

1%

2%

3%

4%

5%

6%

7%

CTR

in %

CTR by Device

PC Mobile Tablet

Morning Commute Work Lunch Work Commute Evening Night Sleep Morning Commute Work Lunch Work Commute Evening Night Sleep

Microsoft Confidential Microsoft Confidential

Retail CPA decreases throughout the day

$0

$10

$20

$30

$40

$50

$60

$70

CP

A in

$

CPA by Hour buckets by Device

PC Mobile Tablet

Microsoft Confidential Microsoft Confidential

Morning tablet clicks may be undervalued

0%

1%

1%

2%

2%

3%

Conversion Rate by Device

PC Mobile Tablet

0

20

40

60

80

100

120

Good Clicks per Conversion by Device

PC Mobile Tablet

Microsoft Confidential Microsoft Confidential

0%

1%

2%

3%

4%

5%

6% Conversion Rate by Device

PC Mobile Tablet

0

10

20

30

40

50

60Good Clicks per Conversion by Device

PC Mobile Tablet

Finance: High quality tablet clicks throughout the day

Microsoft Confidential Microsoft Confidential

0%

5%

10%

15%

20%

25%

Conversion Rate by Device

PC Mobile Tablet

0

2

4

6

8

10

12

Good Clicks per Conversion by Device

PC Mobile Tablet

Travel: High quality mobile clicks afternoon and evening

Microsoft Confidential

Verticals Morning Commute Work Lunch Work Commute Evening Night Sleep

Financial Services PC PC PC Tablet PC PC PC PC Tablet

Health PC PC PC PC Tablet Tablet Tablet Tablet Tablet

Computers & Computing Tablet Tablet PC PC Tablet Tablet PC PC Tablet

Vehicles & Transportation PC PC PC PC Tablet PC Tablet Tablet PC

Jewelry & Watches PC PC Tablet Tablet Tablet Tablet PC Tablet PC

Kitchen & Housewares Tablet PC PC Tablet PC PC Mobile Mobile PC

Electronics PC Tablet Mobile Mobile PC Mobile PC PC Tablet

Apparel PC Tablet PC Mobile Tablet PC PC PC PC

Beauty PC PC PC PC PC PC PC PC Tablet

Travel PC PC Tablet Tablet PC Tablet Tablet PC PC

Microsoft Confidential

Device type giving highest ROI changes by time of day

Example :

• Travel has highest

volume (represented

in dark green) during

Evening

• Tablet has the best

ROI for this vertical

and weekday bucket

low - search volume - high

Device type with highest ROI

Microsoft Confidential Microsoft Confidential

Attribution Modeling

-Anonymous Data Scientist ” He who owns your attribution

model, owns your budget. “

Microsoft Confidential Microsoft Confidential

Traditional approaches

Record ad impressions, search clicks. Attribute value using pre-defined function.

Microsoft Confidential

Attribution: Keyword Assist

Methodology

1. Establish the converted term to trace back prior search queries.

2. Calculate relative probability of appearing in conversion path.

3. Calculate degree of “relatedness”

4. Calculate the user diversity

5. Calculate the frequency of the pattern and pair of converted term and prior search queries

Kauai Vacation

hawaiian

airlines

hyatt

resort

avis

In pilot with select advertisers

Microsoft Confidential

Attribution: Keyword Assist

cheap flights

hotels

hawaiian airlines

kauai vacations

vacations

travel tips

travel blogs

travel insurance

travel deals

best luggage

paris france

travel guide

trip advisor

paris hotel offers

summer vacation Start Query

Intermediate Query

Intermediate Query

Intermediate Query

Converted Query

Funnel 1 Funnel 2 Funnel 3 Search Funnel

Microsoft Confidential

Optimization: Pathfinder - Goal Based Optimization

Enabling advertisers to easily optimize campaigns based upon goal

Objectives:

Provide advertisers goal based recommendations.

Advertiser Benefit:

Advertisers will learn the optimal actions to take based upon their goal (e.g. higher CTR with same CPC)

Microsoft Confidential

Optimization: Pathfinder - Goal Based Optimization

Methodology

Simulate every possible campaign change for every advertiser on our massive parallel computing cluster

Record each change and associated KPIs. Filter and prioritize based upon advertiser goals

Available across retail, education, finance, travel, auto verticals and sub verticals

Microsoft Confidential