sem performance with machine learning

SEM Performance with

@BethThouin, VP Marketing at Acquisio

Machine Learning

We empower campaign managers to thrive in the changing digital economy.

We simplify online advertising and optimization with data. Our award-winning machine learning algorithms perform millions of campaign adjustments per day on 300,000 campaigns for hundreds of clients,

enabling better advertising tracking, optimization and reporting.

AdWords - Facebook - Bing

• What is Machine Learning? • Applying Machine Learning to SEM• Data points• @acquisio

Agenda

Machine Learning and AI are disrupting work being done by

humans

It's being called "The Fourth Industrial Revolution"

First RevolutionSteam, water,

mechanical production equipment

Second RevolutionDivision of labour, electricity, mass

production

Third RevolutionElectronics, IT,

automated production

Fourth RevolutionCyber-physical

systems

Machines are faster, "smarter" and never tire

ML already delivers better marketing outcomes for advertisers of all sizes

Better campaign performance, even for low budget/volume

spends

Automated workflows that dramatically improve operating

efficiencies

Decreased OPEX, Higher customer sat, LTV and lower

churn rates

So HOW does ML work with SEM?

1 Money Management

Bid & Budget Management across platforms (Google/Bing/FB/Yahoo), campaigns, devices, geo, time of day, day of week, GDN topics, and GDN placements, RLSA, and Interactions.

Learning from each individual advertiser and benchmarking per vertical and even per geo.

2 Suggestive ‘Don’t make me think’Suggestions for account audits, keyword selection, ad copy, ad testing, audience segmentation, campaign structure, missed opportunities.

These will all ultimately have to be fully automated.

So how much does ML impact SEM?

ML saves campaign managers approx 65%* of management time. Freeing

up resources for more important work.

*With automation, CMs spend 20 minutes vs 60 minutes per campaign per week.

On average, ML increases clicks by

33%.

N = 12,000 accounts running 3 months+ on Acquisio’s Machine Learning technology. March 2017.

On accounts set to optimize for conversions, ML lifts conversions by

100%.

N = 3,000 accounts running 3 months+ on Acquisio’s Machine Learning technology. March 2017.

Does size matter?

Smaller accounts see better LTV improvements

on ML, but larger accounts are more likely

to see bigger budget attainment

improvements.N = 36,000 accounts running 3 months+ on Acquisio. March 2017.

Beth Thouin

Great! Can you give me a logic beyond this stat? Is it because larger budgets have more to play with on the ad platform?

Tamas Frajka

I think the more precise statement is that larger accounts are more likely to see bigger budget attainment improvement. Small ones are 2.5X more likely because even without BBM they do better than large ones, so the improvement with BBM is greater for large ones (4X) because the base reference is smaller.

Tamas Frajka

I think larger budgets are harder to spend without managing bid and budget. If you have $100 and you set up $5 bids you don't have to look at it again and the money will be gone (perhaps in a few days) with a few dozen clicks. Now if you have $1,000 budget and $5 bids you need 10X the clicks and if you never make any more changes you may never get enough clicks to spend it. BBM would go in and keep upping the bids if necessary to spend. The data show as much: <$500 without BBM 35% can spend their money, but over $1,500 only 17.1% can do it without BBM. So your base reference is lower to start with.

Adwords = 34.6% improvementBing Ads = 16% improvement

LTV / ARPU

2.5X more likely

to hit budget targets on AdWords and 7X more likely on Bing

Ads.*<500$ monthly ad spend

ML-based campaign automation vs rule-based campaign automation

4X more likely

to hit budget targets on AdWords and 15X more likely on Bing

Ads.*>1500$ monthly ad spend

We were able to increase margins from 10 - 15% to 20 - 25% using ML automation. We use machines and humans in tandem to better service customers. Machines perform complex tasks around bidding, budget management and optimization. Account managers are able to focus on things like generating ad copy, landing pages, keywords and otherwise applying their industry knowledge to service customers. ~ Chris Hanson, 3GEngagement

“

What does the future hold for advertisers and agencies? Automation for every routine campaign management task and more… such as keyword selection, audience optimization, even writing ad copy and customer service.

• @BethThouin• VP Marketing @Acquisio• [email protected]

Thank you!