Profit Optimization Algorithm
SoQuero bid management solution has
a unique profit optimization algorithm for optimizing your SEA campaign,
developed in collaboration with professor Skiera (University of
Frankfurt). This algorithm is
used to determine optimal keyword bids that maximize profit after acquisition
costs. The optimization can be based on the last cookie wins method or by
factoring in assists (search funnels).
The process for profit maximization
can function automatically but does not need to act as a black box since the
campaign manager always has the possibility to manually make changes.
How bid optimization works:
Together with professor Skiera (University of
Frankfurt), we are continually refining the algorithm. We recently replaced the
original two-point measuring method with multivariate regression analysis that more
precisely estimates the optimal bid. The regression model uses position,
quality factor and time as influential variables, thus producing a very exact
estimate that accounts for profit maximization after acquisition costs.