AI, machine learning, recommender systems are everywhere today. We have been very discreet about it so far, but we cannot keep it quiet any longer – Adcash and data science is a long time love story! We use this technology for fraud detection and campaign validation, for ad selection and optimization.
18 months ago our team started developing our own internal bidder, the idea was to create an automated ROI-based bidder. A system that would buy traffic automatically with an aim to provide a secured return on investment for the advertiser.
After testing the outstanding level of performance was clear along with its effective scalability and now we’re giving it to our advertisers to use without any extra cost.
After becoming a Performance DSP+ and making the inventory of more than 158 networks and supply partners available, we wanted to focus on supporting advertisers in running performance campaigns.
At the center of our intelligent recommender and prediction systems is the CPA Target or cost-per-acquisition target. Here we explain what this feature can do for you, how it works and, of course, give some extra useful tips. (Scroll down for the condensed TL;DR version ???? )
What is it?
Essentially we’ve built a machine learning system that bids for you on traffic sources that perform the best for you. Most of the industry and best supply sources are expecting advertisers to buy the supply on CPM or CPC basis while advertisers are expecting to secure their ROI by running CPA performance based campaigns.
Our aim with the Adcash DSP is clearly to connect these two worlds. You can now setup CPA based campaigns on each of the networks and traffic sources that we have available!
The whole point of the CPA Target is to make the campaign optimization process fully automated. This means that analysing traffic sources, blacklisting and measuring performance is done for you. The result is that you will be getting efficient conversions while easily scaling the number of campaigns you could run simultaneously while saving valuable time.
How it works?
You define the target price per conversion that you are willing to pay and our algorithms will explore the traffic sources automatically for you, analyzing their performance and cost. The system will process large amounts of data automatically in order to do the campaign exploration for you.
Your average cost per action will start higher than what you have set, but it will reduce progressively. The goal is to reach your average expected CPA as fast as possible mixing highly performing traffic sources with the exploration of new ones, while continuously removing the sources that have a lower likelihood for conversion.
How do we guarantee a fair price?
Our CPA Target is designed to be cost effective, but how does that really work? The explanation to this is the second price auction mechanism, which allows our advertisers to pay fair price. In a nutshell, second price auction means that if you outbid someone and win the auction, you end up paying the amount that they bid + $ 0.01. This means that you’ll save money by not having to pay the full bid and the prices are constantly kept fair. Simple? Yes. Effective? Yes and yes! It’s also pretty rare in this industry to get such reasonable and transparent payment models. We’re not bent in favor of neither the advertisers nor publishers, which means that you can rely on us to truly charge the fair amount.
The most important thing to keep in mind while using the Adcash CPA Target is that while it is an incredibly powerful tool, you still need to be patient. We advise to stick to a goal and not change it often. However, your patience will be rewarded usually within a few days. Be mindful when setting your goals as well. Always set the real value, either industry standards or metrics you have already experienced for user acquisition, this way you’ll be getting truly the best performing traffic for your campaigns.
Here’s the TL;DR version:
- Our CPA Target is all about machine learning-powered automatic optimization in every aspect. You set the value and we’ll do the campaign exploration for you, finding the best performing sources automatically.
- It saves time, because we have it all optimized for you, no manual tinkering is needed. This means that it’s also incredibly easily scalable as you now have the opportunity to apply automatic optimization to as many campaigns as you want to.
- Extra resource for you to analyze large amounts of information about your campaigns very quickly.
- You always pay a fair price, since we are one of the few to truly apply the second price auction model.
For maximum impact we suggest using this tool in combination with our other standout features such as inventory forecasting and supply targeting. To keep a close eye on performance we also have detailed reporting available.