From deterministic to probabilistic SEM bid optimization
The goal of every search engine marketing (SEM) advertiser is to maximize their returns at the lowest possible cost. Campaign performance is primarily tuned by adjusting the maximum cost per click (CPC) bid for each ad. However, finding the “perfect” CPC bid can be a moving target since the auction is constantly in flux. The “sleeper” problem Imagine an extreme (but likely) scenario where ad spend is significantly over the allocated budget for the month....