Adaptive Bidding

Adding Shocks to Make Bidding Smarter

Due to its ability to leverage various ‘inputs’, IMPAQT’s Adaptive Bidding can make smarter optimization decisions about bid levels on different keywords; this is why it’s a powerful bid management tool. It can help minimize budget waste and help remaining budget work more efficiently in optimal areas.

Adaptive Bidding algorithms incorporate changes in the Search environment itself (impressions, click-through rates, and cost per click). Forecasts are updated daily in order to reflect recent changes; therefore, sudden shifts in levels of impressions (example: due to news events), CTR (example: offers), and CPC are automatically detected and incorporated into the next day’s projections. This is very important with uncontrolled inputs, such as website failures, data tracking problems, and competitive activities.

Other inputs – controlled inputs – are meaningful, too. For example, media effects and budget plans can be added to the Adaptive Bidding model. In response to these and other controlled inputs, the forecasts change. For example, the number of impressions may change as a result of external media spending, or the CTRs may change during promotions.

With these well-informed forecasts, Adaptive Bidding adjusts itskeyword bidding strategy, knowing that increases in branded impressions will increase the branded cost, decrease the account CPA, and perhaps “crowd out” more expensive non-branded terms while maintaining volume.

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