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Kenshoo Portfolio Optimizer Transforms Bid Management

Posted on 2.27.2012

Digital marketing software provider Kenshoo has released version 3.0 of its model-based bid policies under the new name Kenshoo Portfolio Optimizer (KPO).

KPO compiles historical data and builds hundreds of thousands of statistical models to forecast the impact of each bid change on a search marketer’s entire keyword portfolio. In turn, KPO adjusts bids to maximize profit, revenue, conversion, traffic or other goals set by the advertiser.

“Many of the world’s most sophisticated advertisers have been running trials of KPO and seeing immediate results,” says Kenshoo CEO Yoav Izhar-Prato. “Our algorithm’s proprietary decision-making process has completely transformed the practice of bid management and lowered the barrier to entry for marketers. KPO makes budget planning more efficient and bottom-line results more attainable within enterprise, local and mobile search advertising.”

The solution helped All-Star Directories, one of the Web’s fastest-growing publishers of online and career-school directories, achieve an 87-percent increase in average daily profit on its Natural Healers site since implementing KPO.

“Kenshoo Portfolio Optimizer automates our bid management and enables much more dynamic optimization than we could perform on our own,” says Ryan Bruss, search engine marketing manager for All-Star Directories. “It immediately reduced our costs per click significantly, and with constant conversion rates, profits have been consistently higher. The new algorithm figured out where we could reduce bids, and it boosted profit 87 percent.”

Version 3.0 is powered by a self-learning algorithm that incorporates custom seasonality information to anticipate jumps in traffic and conversion rate around promotions or important holidays. The KPO process builds models for keywords with little or no performance data and re-evaluates keyword clusters every day to maximize impact on the portfolio goal.

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