Algorithms and Optimization for Search Engine Marketing
18 October 2012
Using portfolio optimization to achieve optimal performance of a search campaign and better forecast ROI.
Given the complexity and volatility in the marketplace, marketers need a proven method to manage their search campaigns. The portfolio theory of bid optimization lies in building good keyword models that capture behaviour from both the cost side and the revenue side. Backed by good models and bid automation, portfolio optimization increases search campaign performance. These models and optimization also give marketers the power to forecast performance for different business constraints and goals. The synergy of models, automation, and optimization enable advertisers to run campaigns predictably without compromising performance.
Volatile markets are a difficult environment for online advertisers. If advertising spend is cut, sales volume is lost. If spend is increased, the company exposes itself to significant risk on the margin. Achieving success and daily business goals in a volatile market can be accomplished with the right balance of the complex interplay of science and technology.
Download this guide to understand the mathematics and technology behind the methods that ensure success for search advertisers during both good and bad economic times.