continuous optimization of sem performance by bryan minor

Continuous Optimization of SEM Performance

SMX Advanced, Seattle

Bryan M. Minor, Ph.D. Chief Scientist, Acquisio

Performance Media Platform

Continuous SEM Optimization


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


Problem statement:


• 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


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:


• 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


Experimental ABC data #1


Experimental ABC data #4 – many Budgets

• BBM start: 24 May 2014


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




490 $2.07 892 $1.21

• BBM start: 23 Apr 2014




29 $1.24 56 $0.63

• BBM start: 23 Apr 2014




23 $2.08 76 $0.64

Conclusions


• 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

continuous optimization of sem performance by bryan minor

Marketing