The webinar discussed how AdMetrica uses algorithms and machine learning to optimize Google Display Network campaigns for clients to increase conversions and lower cost-per-acquisition. AdMetrica's technology makes over 100,000 decisions per day across five variables - keyword lists, ad placement, bidding, budgets, and ad selection - to more effectively target the right audiences. Case studies showed how AdMetrica decreased CPAs by 30% or more for clients in online dating and e-commerce. The presentation explained AdMetrica's automated approach to bid optimization and how it captures spikes in conversions and lower costs that correspond to fluctuations in general search volume.

1. How to increase conversions and lower CPA for
Google Display Network using AdMetrica

2. House Keeping
• The webinar is recorded and will be made available
• The slides will also be available
• Q&A session at the end of the webinar
• Use the Chat box to submit your questions at any time

3. Presenters
Marc Poirier Bryan Minor
Co-Founder and CMO Chief Scientist

4. WHY DID WE ACQUIRE
SCIENCE OPS?

5. Integration with Acquisio
• The technology we’re about to discuss needs experts to setup
and make adjustments
• Fully managed solution for now
• We help you sell it to your clients
• Focus on accounts with LOTS of conversions
• Works GREAT with general interest offers like retail, dating,
magazine subscriptions, membership offers, education, lead
gen, etc.
• First integration is already “completed”

6. About GDN
• No details on exact size of business
• Tied with FB for Display Revenue but growing faster
(emarketer)
• AVG CTR 0.4% - 10x higher than FB
• CPC model
• Lots of inefficiencies in market = opportunity!!
• Very different from search
• Can bring scale to ad campaigns if done right
• Can also be a huge disappointment when done wrong
• Opportunity for advertisers is significant

7. ScienceOps
Algorithmic expertise in astrophysics, genetics, and online advertising

8. Google Display Network
The first technology devoted exclusively to optimizing GDN conversions.

9. AdWords API
The Algorithms of AdMetrica run within Google AdWords (via API).

10. Purpose
• CPA target + Conversion volume + Spend control

11. GDN Revenue Growth

12. Performance Advertising Growth

13. GDN Display Market Share
2011 Display Ad Spend
(in Billions $ with and Market Share %)
$5.8, 19%
Other Display
International GDN
US GDN
$6.5, 21% $18.1, 60%

14. CPA at volume

15. Ad Placement?

16. Scope of AdMetrica
Client Client
Landing Purchase
Ad Keyword URL Ad Thank-
or
Creative Lists Placement Selection Page Registration you Page
Bidding Budget
AdMetrica

17. Variables Optimized
Five Conv. Variables
1. Keyword Lists
2. Ad Placement
3. Bid Pricing
4. Budget Control
5. Ad Selection

18. Keywords
Keyword lists are constantly (algorithmically)
sampled, tested and rewarded according to live
1. Keyword Lists performance data and quality score feedback. This
gains access to an ever-expanding number of GDN
pages that convert.

19. Ad Placement
Ad-to-page placements are controlled down to the
URL level, increasing a given ad’s relevance (and
2. Ad Placement its CTR) by more closely fitting the ad to the content
of the page.

20. Bids
Algorithms bid in a live and dynamic process that
3. Bid Pricing allows for far greater control over bid pricing. This
enables either suppression of CPA or, if
desired, incremental bid increases to gain conversion
volume

21. Daily Budget
By monitoring of daily budgets hourly, algorithms can
4. Budget Control allocate budgets only to campaigns that warrant it. This
lowers CPA by cutting off underperforming
campaigns, and feeds budgets to high performance
campaigns.

22. Ads
Metrics-based analysis allows for comparative
5. Ad Selection performance evaluation between ad creatives This
allows for an objective measurement of ad
performance.

23. Not for Humans
Decisions: 100,000+/day/campaign
To effectively gain conversions at the right price, an enormous
number of decisions are made by AdMetrica’s algorithms.
The daily job of properly managing a GDN account (i.e. choosing
keyword list combinations, making budgeting adjustments, targeting
URL’s for ad placement, and fine tuning bid prices) requires an
average of over 100,000 decisions.
For this, a human would be need to make 1.2 decisions every
second – with perfect accuracy.

24. 2 Stage Conversions

25. 2 Stage Conversion Approach
• Stage 1
• Customer joins site with a free membership
• Customer information acquired
• Stage 2
• Conversion event with revenue
• Campaign Quality of conversions
• Feedback drives the process

26. Target = $1.40
Mean = 1.39, SD = 0.27
140
120
100
80
Frequency
60
40
20
0
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4
avgCPA

27. Old Bid Algorithm
March 26-31: CPA Accuracy for US
45.00
40.00
35.00
Avg. # of Conv./Campaigns
30.00
25.00
26-Mar-12
20.00 27-Mar-12
28-Mar-12
15.00
29-Mar-12
10.00 30-Mar-12
31-Mar-12
5.00
TOTAL
0.00
CPA Accuracy as a % of Target
(Target Varies by Campaign)

28. New Bid Algorithm
May 18-23: CPA Accuracy for US
80.00
70.00
60.00
Avg. # of Conv./Campaign
50.00
18-May-12
40.00
19-May-12
30.00 20-May-12
21-May-12
20.00
22-May-12
10.00 23-May-12
TOTAL
0.00
CPA Accuracy as a % of Target
(Target Varies by Campaign)

29. Case Study #1 – MRD1
• CPA decreased
• CPC targeting optimization on major solo site – 30% decrease
• Mobile advertising
• Dropped overall CPA by 30%+
• 35% cheaper than average
• Conversions increased
• Mobile increased volume by 180%+
• Audiences increased volume by 15%+
• More solo site targeting increased volume by 10%+

30. Online Dating campaigns
• CPA decrease
• Decreased by 30% due to fine grain targeting
• Focused optimization of bidding on the very best sites
• Conversion increase
• Great solo placement (domain) targeting increased by 40%+
• Increased Side door targeting increased by 20%+

31. Google Search Activity
Tsunami Effect
Google Search* AdMetrica GDN Conv.s
(sweepstakes) (sweepstakes)
AdMetrica captures surges of $ CPA
conversions (and plummeting (sweepstakes)
$3.25 CPA’s) accompanying sudden 8,000
spikes in Google’s general
search traffic volume.
$3.00 7,000
$2.75 6,000
AdMetrica GDN Conv #
AdMetrica GDN CPA
$2.50 5,000
dddddddddddddddddfdffffggfffffffffffffffffffffffffffffffffffffffffffffgfffffffffffvggd z
$2.25 Google Search 4,000
Vol.
$2.00 3,000
$1.75 2,000
$1.50 1,000
$1.25 0
Google Display Network ad engine engine
Google Display Network conversion
* Source: Google Trends

32. Light Box Sales Funnel

33. Clients
“The (Google) display network has always been cloaked in mystery, but
AdMetrica seems to have cracked the code. This technology allows us to scale
faster while lowering costs. I’ve never seen anything quite like it.”
– Joe Davison, eComm. Mgr., Meredith Media
“American Family has never seen conversion numbers like this; it took
AdMetrica only 3 days to outperform our prior GDN numbers by more than
100%.”
– Scott Krauss, Mtg. Mgr., Am.Family, Time Inc.

34. Getting started with AdMetrica
1. Paperwork complete
2. Provided by client
• Ads for campaigns
• Sales funnels (landing page to thank you page)
• Performance data on previous efforts
• Account access granted for MCC access
3. Kickoff meeting
4. Initial keyword lists created and approved
5. Initial launch
6. 30 day incubation period

35. THANK YOU
QUESTIONS?