ZEDO’s Automatic Campaign Optimization uses ad performance and parameters set by you to identify and rotate your best performing creative, saving you the trouble of monitoring ad performance in order to manually optimize ads.
The Automatic Optimization system is comprised of several elements:
- Optimization Criteria
- Performance Evaluation “Lookback” window
- Sample Size
- Performance Goal
- Weight and Scale of rotation
How it Works
Campaign Optimization turns off underperforming ads, and serves remaining top performing ads by scaling impression allocations based on up-to-the-minute performance data.
Turning on Campaign Optimization
Click the Automatic Optimization button at the far right of the Campaign Details screen. If you don’t see this button, contact your Account Manager or Support.
The types of optimization you can use vary based on the campaign type.
Optimize on CTR
Optimize on ECPM
Optimize on Conversions*
*Optimization by Conversions is available for any campaign which is tracking actions.
The lookback window determines the data set ZEDO will use to determine the ad’s performance. For example, if you have optimized on CTR, you may choose to use only the CTR calculated in the last two weeks. This value may differ greatly from the entire life of the campaign. We recommend using between one to two weeks’ data, depending on the volume running through your account.
Note: By default only CTR is enabled. If you wish to optimize by eCPM or by conversions, contact Support.
You can set your threshold on impression and/or clicks.
Example: If an ad has served 50 impressions and has gotten 10 clicks, its CTR is 0.2. This is a very good CTR, but since clicks are likely to decrease as impressions increase, we recommend waiting until an ad has served at least 1000 impressions for accounts with small volumes and at least 5000 for accounts with large volumes.
Minimum Performance Goal
Performance Requirements let you tell ZEDO how well the ad should be doing in order to run. You can define minimum performance of an ad by CTR or conversion rate.
If your ads do not meet the set performance goals, they will stop serving; the optimization engine will only serve ads that meet or exceed your goals.
The optimization engine will:
- Start after your ad has gone through initial delivery of its sample size (reached its threshold)
- Look at the performance of your ad over the last X weeks
- Compare ad performance to the performance goal, and pause ads that do not meet the goal
Setting Minimum eCPM by Channel + Ad Dimension
As part of Automatic Optimization, you can set a minimum eCPM for ads being served on those dimensions within that channel.
Channels tab >> Edit Channel (click Channel name) >>Channel-Ad Dimension Setting section
Enter the minimum acceptable eCPM in the ECPM($) column under Optimization setting at Channel level. This will only be applied to ads to optimized campaigns.
For example, you could set the following:
|Channel||Ad Dimension||Minimum eCPM|
When these ad tags are hit, ZEDO will check all campaigns for appropriate targeting.
- Optimized campaigns: Will serve any appropriately targeted ads with revenue at or above the set minimum eCPM.
- Non-optimized campaigns: Will serve any appropriate ads.
Recommendations for Optimization Settings:
- We recommend using one to two weeks’ data to optimize, depending on the volume running through your account. (If your account runs at high volume, then a week may suffice.)
- eCPM should only be used for CPC and CPA campaigns.
- Automatic Optimization runs best when the campaign contains multiple ads of the same dimension.
- At any time, you can consult the ZEDO Support team about your optimization settings.
Optimized Ad Delivery
Weight and scale of rotation
For the ads that meet optimal conditions and are actively serving, ZEDO’s Optimization Engine can also allocate impressions so that higher performing ads serve more, in proportion to their individual performance (eCPM, CTR, Conversion Rate). Or, you can choose to manually weight and scale the ads yourself.
Use these controls to set your scale and weight preference manually:
In the example above, the best ad will serve nine times more than the worst ad. ZEDO will automatically compute weights for all the intermediate campaigns. Remember, ads on the same level will compete for share of voice based on their weights. Ads on other levels do not compete for the same inventory.
AD ID CTR WEIGHT
—– — ——
1 0.5% 10
3 0.9% 34
4 1.4% 64
2 1.5% 70
6 1.7% 82
5 2.0% 100
Since eCPM Optimization uses a normalized property (eCPM) for comparison, we can compare the performance of optimized ads with ads from other campaigns (that don’t have optimization turned on). This means that on a particular channel, an optimized ad that is performing well may actually cause a non-optimized ad to serve less. The system will grant a larger allocation of impression to the strong performer.
Why use Automatic Optimization?
Automatic Optimization acts as revenue optimizing mechanism – serving more of the ads that earn you higher returns.
What is eCPM?
eCPM stands for effective CPM. eCPM is calculated by dividing total earnings by total number of impressions: eCPM = (revenue/ impressions) x 1000. It is a great performance measure for your various ad units, so when experimenting, you can use eCPM to compare your results.
Why do I need to set a sample size?
The sample size provides the ZEDO ad scheduler with a threshold after which it can begin optimization. Only after ads in the campaign have crossed this threshold will ZEDO start serving ads based on performance (as calculated from the sample data).
What is scaling and why is it used?
Scaling is an alternative to letting the system use the eCPM to determine weight for ads. Scaling allows you to manually set the serving ratios of lowest to highest performing ads.
How often does ZEDO run the Optimization Engine?
The optimization engine runs once every 30 minutes.
Please contact Support with questions or comments.