Tuesday, September 16, 2014

Optimization depending on Business Model

Every time an ad is shown by the Ad Network, it generates a request to GroovinAds Decisions Engine. GroovinAds uses complex probability and statistics equations to choose the offers and or designs that will be show, identifying each user. The engine determines if the user has been to Advertiser site in the past (Re-Targeting Segment) or not (Prospecting Segment), and optimizes those segments according to:

1.       Re-Targeting Segment: GroovinAds will show an offer according to the users' interests, in combination with Advertiser's business model and internal rules.

2.       Prospecting Segment: GroovinAds analyzes the user's location, the host on which the ad is printed, the context and semantics of the page, how many times the user has viewed the banner, trends of time and day, offer performance, etc., and shows the offer most likely to generate clicks and conversions depending on the Advertisers business model.

The CTR and conversions increase as the engine collects data, since the learning is dynamic and will adjust to behavior of the users who view and click on the banners, presenting a learning curve.

Each Advertiser has different rules that help optimize their display campaigns. In addition to specific internal rules, there are also general rules that depend on the Advertiser's Business Model.

The optimization of flight offers is not the same as the optimization of lodging offers. Or, the optimization of car campaigns is not the same as appliances campaigns. Each business has general rules that improve their performance, that would not be useful to a different business.

Inside GroovinAds Platform the Advertiser integrates their offers feed and, for every feed they add, they must choose a Business Model. This will:

         Determine the fields that suit the Advertisers' offers.
         Determine the dynamic information that can be displayed in the ads for each offer (landing page, image, title, price, description, country where it will run, etc)
         Define the best segmentation criteria for the campaign, that will be taken into account by GroovinAds decision engine.

Some segmentation parameters differ according to the Business Models. For the Prospecting Segment, some examples are:

These rules combine with the other segmentation criteria in the equations that GroovinAds Decisions Engine uses, resulting in the best set of products that will be shown in each banner impression, to maximize clicks and conversions.

It is a huge step to be able to use technology to optimize segments that previously needed a lot of manual work and arbitrary decisions, that not always went hand in hand with the users' preferences. This technology achieves a remarkable performance boost!

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