A significant portion of the process of managing PPC campaigns is keyword bid management. The sheer volumes of keywords, its interaction with each other and the highly competitive search engine bid environment makes it a challenge worth automating!
The Position² AutoBid Engine can predict keyword positions for each bid and provide recommendations to maximize the revenue. This short article covers the overall framework of our engine.
Most companies start off its bid management with a heuristic rule based bidding model. The next level is adding statistical and probabilistic analysis to the historical information. The biggest challenges in this are:
- Identifying variables to model and how each of these variable have a effect on other models? This include – Conversion rates, click through rates (CTR), Click/CPC history, average position & discounting.
- How to model variable for keywords which do not have sufficient data ? Long tail keywords may have very few impression let alone clicks and conversions.
- How relevant is historical data ? The speed at which the internal marketing focus, competition, consumer preference & search engine algorithms change, makes it difficult to work on very old data.
Even after modeling each keyword, the choice of taking a risk of one keyword against another always remains. Should all keywords be treated at par or should you risk a higher bid for a keyword which is at its tipping point? With constraints such as budget limitation, what is an optimal solution to maximize revenue?
Once these engineering challenges are solved, the question that persists is the value of simple bid management or using manual intervention to improve quality score by improving ad-copy and landing pages.
Our AutoBid Engine automates the tedious process of bid-management and frees up our analysts to focus on improving the quality of keywords, adcopy and landing pages. It goes beyond rules-based bidding and employs ROI portfolio optimization techniques to maximize profit and volume over user defined criteria. We will be opening it for customers as part of our newly launched product offering.
Here is another article that you might find interesting – http://searchenginewatch.com/3626132