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Automated Bid Adjustments in Search Engine Advertising
KTH, School of Information and Communication Technology (ICT).
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

In digital advertising, major search engines allow advertisers to set bid adjustments on their ad campaigns in order to capture the valuation differences that are a function of query dimensions. In this thesis, a model that uses bid adjustments is developed in order to increase the number of conversions and decrease the cost per conversion. A statistical model is used to select campaigns and dimensions that need bid adjustments along with several techniques to determine their values since they can be between -90% and 900%. In addition, an evaluation procedure is developed that uses campaign historical data in order to evaluate the calculation methods as well as to validate different approaches. We study the problem of interactions between different adjustments and a solution is formulated. Real-time experiments showed that our bid adjustments model improved the performance of online advertising campaigns with statistical significance. It increased the number of conversions by 9%, and decreased the cost per conversion by 10%.

Abstract [sv]

I digital marknadsföring tillåter de dominerande sökmotorerna en annonsör att ändra sina bud med hjälp av så kallade budjusteringar baserat på olika dimensioner i sökförfrågan, i syfte att kompensera för olika värden de dimensionerna medför. I det här arbetet tas en modell fram för att sätta budjusteringar i syfte att öka mängden konverteringar och samtidigt minska kostnaden per konvertering. En statistisk modell används för att välja kampanjer och dimensioner som behöver justeringar och flera olika tekniker för att bestämma justeringens storlek, som kan spänna från -90% till 900%, undersöks. Utöver detta tas en evalueringsmetod fram som använder en kampanjs historiska data för att utvärdera de olika metoderna och validera olika tillvägagångssätt. Vi studerar interaktionsproblemet mellan olika dimensioners budjusteringar och en lösning formuleras. Realtidsexperiment visar att vår modell för budjusteringar förbättrade prestandan i marknadsföringskampanjerna med statistisk signifikans. Konverteringarna ökade med 9% och kostnaden per konvertering minskade med 10%.

Place, publisher, year, edition, pages
2017. , p. 54
Series
TRITA-ICT-EX ; 2017:76
Keywords [en]
Digital Advertising, Bid Adjustments, Optimization, Statistical Analysis, A/B Testing
Keywords [sv]
Digital Marknadsföring, Budjusteringar, Optimering, Statistisk analys, A/Btestning
National Category
Computer and Information Sciences
Identifiers
URN: urn:nbn:se:kth:diva-210651OAI: oai:DiVA.org:kth-210651DiVA, id: diva2:1119130
External cooperation
Precis Digital
Subject / course
Computer Science
Educational program
Degree of Master
Supervisors
Examiners
Available from: 2017-07-03 Created: 2017-07-03 Last updated: 2018-01-13Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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