Automatic Optimization

© 2010 MediaMind Technologies Inc. | All rights reserved

Limor Nadav – Greenberg | Solution Specialist

January 2011

Automatic Optimization


▸ Automatic Optimization concept

▸ Optimize how?

▸ Optimize according to what?

▸ Optimize where?

▸ Targeted Optimization

▸ Discussion

▸ Hands on

Agenda


Automatic Optimization

Implement Switch Marketing video here.

(Explains why use Auto Optimization?)


Automatic Optimization Concept

Nike Total, Weight: 33.3%Nike T90, Weight: 33.3%,Nike 6.0, Weight: 33.3%

1000 Clicks2000 Clicks

4000 Clicks

01000200030004000 Nike T90

Nike 6.0Nike Total


Remember Greatland Airlines…?

They have several ads directed to each target audience:

NY :

WA:

…


Remember Joe and Greatland Airlines…?

Joe wants to optimize the serving within each target audience, so that ads that get a higher rate of clicks will serve more impressions.

NY :

WA:

…

Let's see how the optimization mechanism works…


Optimize How?▸At first – all impressions are equaly distributed among the ads That is the case until all ads pass the threshold and get the weight calculated for them

based on their performance.▸Preformance of the ads is measured.▸The results of this comparison will dictate the serving of the remaining 90% of the impressions.▸After the first optimization - 10% of all impressions are equally distributed among all ads, and used for the next calculation.


Optimize How?

Two possible optimization methods:

Better ads play more

Winner takes it all


Optimize How?

▸ Better ads play more

Ads are served proportionately to their performanceSeries1

15%

25%

50%

90% Impressions

Series1

3.3% 3.3% 3.3%

10% Impressions


Optimize How?

▸ Winner takes it all

The best performing ad wins all 90% of the remaining imp.

Here Joe will select “Better ads play more”

Series1

90%

90% Impressions

Series1

3.3% 3.3% 3.3%

10% Impressions

© 2010 MediaMind Technologies Inc. | All rights reserved© 2010 MediaMind Technologies Inc. | All rights reserved

Which option would you use and when?


Optimize According to What?

You can now optimize based on two metrics together!

…and set their weights!

Joe will pick “Clicks” as the optimization metric



Let's take an example:

Ad A: (0.2%*80%) + (8%*20%) = 0.0176Ad B: (0.3%*80%) + (4%*20%) = 0.0104

Ad A is the winning ad!

Clicks rate Dwell rate

Ad A 0.2% 8%

Ad B 0.3% 4%



Available Options:

New optimization metric: Dwell Rate

The user will be able to select multiple custom interactions and multiple conversions.


Optimize Where?

Users will now be able to optimize across all placements in a certain Delivery Group!

Useful when there is no real difference between the audiences of different sites. This will make the optimized serving start faster (this is especially useful when the campaign is targeted).

Joe will choose “Entire Delivery Group”


Optimization Cross Placements

The user will be able to choose between optimizing the ads according to data that is gathered in the specific placement

or the whole Delivery Group.

Ad Group

Yahoo

MSN

A B

A1 B1

A2 B2

Clicks= 2000 Clicks= 500



90%10%

90%10%

* We are assuming both ads got the same number of impressions


Optimization Cross Placements

The user will be able to choose between optimizing the ads according to data that is gathered in the specific placement

or the whole Delivery Group.

Ad Group

Yahoo

MSN

A B

A1 B1

A2 B2



90% 10%

90%10%

* We are assuming both ads got the same number of impressions


Algorithm Revised

• Process is initiated every 2 hours.

• Have all ads reached their threshold?

• Calculate ads performance• Assign new weights• Start to collect new data

Yes

Ads keep serving according to their current weight.

No

Threshold:• Is set according to the selected optimization metric.• Set per ad.


Coming up soon…Targeted Optimization

Available for the following types: Geo

Site Keywords


Play Time

MM Reach Media Award goes to…

Which ad did you like best?

Display AdDisplay AdDisplay Ad

http://www.mediamind.com/creative_zone/Despica_YT_UK/index.html

http://www.mediamind.com/creative_zone/nissan_qq3d_takeover_msn_mm/nissan_qq3d_takeover_msn/index.html

http://origin.demo.eyeblaster.com/Creative_Zone/Rabbids_go_home/index.html


Few Notes…

When using automatic optimization:

The delivery group can contain only one instance of each master ad.

You cannot create sub groups.

However, you will be able to create time-based groups with automatic optimization within groups.


Discussion

When would you recommend that the advertiser use targeting, and when would you recommend using Targeted Optimization?


Hands On


Thank you!


Appendix

What is the threshold for initiating optimized serving?

* General rule: the impressions threshold is a function of the optimization metric selected. The lower its expected rate is – the higher the number of minimum impressions it will require.

Metric Expected Value Min Threshold (actions) (OR) Min ImpressionsClicks 0.1%-0.3% 5 4,000 Interactions 0.5%-15% 5 797 Specific Interaction 0.1%-15% 5 4,000 Dwell 2%-15% 5 196 Conversion 0.01%-2% 5 4,000 Specific Conversion 0.01%-2% 5 4,000


AppendixWhat happens when a new ad is added to the Delivery Group?

* The threshold of impressions is a fixed number that is set according to the metric the user has selected to optimize according to. In case the ad has acquired 5 events of the specific metric before reaching the number of impressions, it will be considered as if it has passed the threshold.

Step Details Rate of impressions served1 The user will create a delivery group containing ads and define the

optimization settings for it.

The ads will be served evenly until each of the ads will pass the threshold of impressions (*).

10% of imp.Ad A – 5%Ad B – 5%

90% of imp.Ad A – 45%Ad B – 45%

2 Once all ads have passed the threshold, they would get the appropriate weights, according to their performance. If the optimization method is “Winner takes it all” – then only the best one will be served. (On the right - example for “Winner takes it all”).

10% of imp.Ad A – 5%Ad B – 5%

90% of imp.Ad A – 90%Ad B – 0%

3 In case a new ad is added to the delivery group, it will cause all of the ads to be served evenly. Once the new ad passes the threshold, the optimization process would be triggered and the weight of the ads would be recalculated. No performance data would be lost for the other ads that were already optimized.

10% of imp.Ad A – 3.3%Ad B – 3.3%Ad C – 3.3%

90% of impAd A – 60%Ad B – 0%Ad C – 30%

4 Once the new ad passes the threshold, it would get its weight according to its performance.

10% of imp.Ad A – 3.3%Ad B – 3.3%Ad C – 3.3%

90% of impAd A – 90%Ad B – 0%Ad C – 0%

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Automatic Optimization