New ROI algorithms lead to improved performance

Tuesday, March 6, 2012 |

We’ve recently launched new algorithms for CPA, ERS, and Floodlight tag bid strategies, but have they made a difference? Now that some time has elapsed, we’ve been able to analyze the long-term impact of the new ROI algorithms.

NOTE: The following analysis was performed on CPA bid strategies, but CPA, ERS, and Floodlight bid strategies all use the same model.

87.5% of bid strategies saw statistically significant improved performance (the remaining 12.5% saw no significant statistical change or fell within the +/- 10% variance interval). Improved performance is defined as meeting one of the following conditions:

Conversions increased and actual CPA decreased: 46% of the improved bid strategies achieved this. Of these bid strategies:
  • The median increase in conversions was 150%.
  • The median decrease in CPA was 55%. Note that the conversion increase and CPA reduction happened at the same time to the same bid strategies. In other words, these bid strategies enjoyed both of these improvements.

CPA and conversions moved in the same direction, but moved closer to the target: The remaining 54% of improved bid strategies met this goal.

Excited about these improvements? Ready to see if an ROI bid strategy can improve the performance of your important keywords? It’s easy!
  1. In the left nav, under the engine account box, click Bid strategies.
  2. Click +New. The panel of properties for the new bid strategy appears.
  3. Name your bid strategy, select the engine account, and select the desired type of bid strategy (Target CPA is selected in the above image).
  4. Enter the desired settings for the bid strategy. Learn more about CPA, ERS, and Floodlight tag bidding settings.
  5. Include a position range if you want to ensure the keyword never drops below a particular position.
  6. Click Save, and then navigate to a page with a list of keywords.
  7. Select the keywords you want to add to the bid strategy, click Bid strategy, and select the bid strategy in the panel that appears.
  8. Enter a min bid and max bid for the keywords. We recommend entering a wide range (low min and high max) to allow DS to fully optimize your keyword performance.
  9. Click Save.
  10. After a week or two, check DS reporting to see how your bid strategy is performing.
Check out the Help Center for more information on setting up any type of bid strategy. If you have any questions, contact your Technical Account Manager or email ds-support@google.com.

Posted by the DoubleClick Search team