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Automated bidding systems with stochastic programming?
Do they exist? Can I buy one?

10+ Year Member

Msg#: 3406739 posted 9:21 pm on Jul 27, 2007 (gmt 0)

If you have a lot of keywords, the "optimal" bidding should be determined by some sophisticated optimization algorithm. If there an automated bidding system that does this? One that I can rent for a reasonable fee? I've used bidding software in the past where we set a target position and max bid. It was fine for what it did (although with Panama I'm not sure how it would work now.) But I am wondering about systems that take a more overall look at the entire keyword portfolio and optimize the way people in operations research do.



WebmasterWorld Senior Member 10+ Year Member

Msg#: 3406739 posted 7:21 am on Jul 30, 2007 (gmt 0)

Hi Beren,

The company I work for (Efficient Frontier) has been developing and deploying just such a system for 5 years now. We've adapted portfolio trading algorithms from Wall St to the optimization of paid search campaigns on Google, Yahoo and MSN, and our algorithms look at historical and actual impression/click/cost/revenue/margin data in order to figure out how best to allocate spend across a keyword set.

There are other systems out there as well (Atlas Search and Dart Search most notably), but neither of them do data modeling *across* a keyword portfolio.



5+ Year Member

Msg#: 3406739 posted 7:38 pm on Jul 30, 2007 (gmt 0)

"Any url drops to PPC utils, programs, or services. You can bet if you drop a url to a PPC bid manager, that it will be deleted. We are not an advertising platform."


WebmasterWorld Administrator brett_tabke us a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

Msg#: 3406739 posted 3:15 pm on Aug 2, 2007 (gmt 0)

There are numerous systems out there, both in the big leagues and mom & pops. look around.


5+ Year Member

Msg#: 3406739 posted 12:58 pm on Aug 6, 2007 (gmt 0)

If i may add, my company (MediaBoost) delivers an integrated solution that focus on optimizing net profit, under budget constrains. therefore, if you limit us to spend X amount of money, we'll allocate it through the whole campaign in an optimal manner, using advanced operations research. although, as mentioned above, many companies offer a solution, most of them do not offer scientific solution that fits small-mid size campaigns with limited stats like we do.


WebmasterWorld Senior Member 10+ Year Member

Msg#: 3406739 posted 1:29 pm on Aug 6, 2007 (gmt 0)

Booster, are you promoting something here :)


5+ Year Member

Msg#: 3406739 posted 6:47 am on Aug 7, 2007 (gmt 0)


here is a question for u..
first .... was ef fired from the ebay a/c cause u guys couldn't deliver what u promised? that also in 3 months flat?

i say that no bid management s/w can ever replace an analyst..
as of now atleast .. u will need a very intelligent system

i say u should stick to ur normal bid mgmt


5+ Year Member

Msg#: 3406739 posted 9:08 am on Aug 8, 2007 (gmt 0)

since my company is offering something that matches exactly what the thread is about, i felt it is suitable to present what we do. i hope you will excuse me for that... :-)

looking around into bidding solutions, i had a feeling that serious mathematical solution (enhancing bottom line results and not advertiser rules based robot) combined with self service is yet not out there.
we're trying to bring it to small and medium size advertisers that don't want the hassle of integration, service and analysts, and don't want to commit for long run before they see results.


WebmasterWorld Senior Member 10+ Year Member

Msg#: 3406739 posted 12:06 am on Aug 13, 2007 (gmt 0)


I don't know where you got 3 months from, but try 2 full years. EBay took keyword mgmt inhouse when they bought Shopping.com for $600M+ and inherited Shopping's 20+ people who'd been devoted to SEM. If it makes you feel better to think EF was thrown out after 3 months, by all means live dilusionally. Fact is, though, under EF's system EBay had such good returns from PPC that they mentioned it in at least one earnings call during the period.

Also, there's a reason keyword mgmt firms and systems exist and are managing a large majority of the top 1000 PPC advertisers; if you can't figure out why it makes sense to do the same, I'd submit you either have a job to protect (yours) or work for a non-tech agency.


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