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Overstock

Maximizing ROI with Adaptive Bidding Strategies in Overstock Sponsored Products

Overstock is constantly evolving to bring its customers the best online shopping experience possible. With new features being launched every day, customers can look forward to an ever-evolving and improving online shopping experience.

Overstock came up with a new feature which is Adaptive bids in bidding strategy. As it can change your item’s bid in real-time, your item’s bids will be increased automatically based on historical performance and competition in case of bidding. As it judges historical performance, it’s best to use adaptive bids for top-selling items.

In Adaptive Bidding, the system analyzes a wide range of data, including historical conversion rates, click-through rates (CTR), and other metrics to determine the optimal bid for each individual auction. The goal is to bid the right amount to win the auction while achieving the advertiser’s performance goals, such as maximizing conversions, clicks, or return on ad spend (ROAS).

Adaptive Bidding: What is it?

Adaptive Bidding Strategy is a type of bidding strategy used in digital advertising, particularly in pay-per-click (PPC) campaigns. This strategy uses machine learning algorithms to automatically adjust bids for each ad auction in real-time, based on factors such as user behavior, ad performance, and competition levels.

How does Adaptive Bidding work at the campaign level?

Adaptive Bidding works on advertising that adjusts bids in real-time based on various factors such as device type, audience demographics, and location. It is a way to optimize ad performance by allowing the bidding system to make automatic adjustments to bid values based on the likelihood of an ad being successful.

At the campaign level, Adaptive Bidding works by analyzing data and adjusting bids based on the performance of individual ads. The system uses machine learning algorithms to identify patterns and trends in ad performance and adjust bids accordingly.

When Adaptive Bids are enabled, Overstock will bid more when your products are more likely to convert (up to 200% above the bid amount), or less when your products are less likely to convert.

Example: A bid of $2.00 could increase up to $6.00 when Adaptive Bids are enabled.

How does Enabling Adaptive Bids?

From the Campaign Manager tab in Supplier Oasis, click on a proposed or existing campaign, or click New Campaign. In the section titled Bidding Strategy, select Adaptive Bids. Continue building or editing your campaign as normal.

Adaptive Bidding Strategies can help advertisers save time and improve their campaign performance by automating bid management and adjusting bids in response to changes in the competitive landscape. By using machine learning algorithms to analyze and predict the outcomes of ad auctions, Adaptive Bidding can improve the accuracy and efficiency of bid management, leading to better results for advertisers.

What are the benefits of the Adaptive Bidding strategy?

Adaptive Bidding is a machine learning-driven bidding strategy that uses historical performance data to automatically adjust bids for each auction in real time. When implemented at the campaign level in Overstock, there are several benefits:

  • Improved Performance: Adaptive Bidding helps to improve the performance of Overstock campaigns by automatically adjusting bids in real-time to ensure the highest possible return on investment (ROI) for each ad placement.
  • Increased Efficiency: With Adaptive Bidding, Overstock advertisers no longer need to manually adjust their bids for each auction, which can be time-consuming and inefficient. The algorithm automatically adjusts bids to achieve the desired outcome, freeing up time for other important tasks.
  • Higher ROI: Adaptive Bidding helps Overstock advertisers achieve a higher ROI by ensuring that their bids are optimized for each auction, which maximizes the chances of winning the bid while also minimizing the cost.
  • Increased Control: Adaptive Bidding gives Overstock advertisers more control over their campaigns by allowing them to set specific goals and constraints, such as a target cost per acquisition or maximum bid, that the algorithm will take into account when making bidding decisions.
  • Better Insights: Adaptive Bidding provides Overstock advertisers with valuable insights into the performance of their campaigns, including which keywords and placements are generating the most revenue and which are underperforming. This data can be used to optimize campaigns and improve future performance.

Tips & Tricks for Maximizing ROI with Adaptive Bidding Strategies

Adaptive Bidding Strategies can help maximize ROI in Overstock Advertising by using machine learning algorithms to automatically adjust bids based on real-time performance data. Here are some tips for maximizing ROI with Adaptive Bidding Strategies in Overstock Advertising:

  • Set Clear Goals: It’s important to set clear goals for your campaign, such as a target cost per acquisition (CPA) or return on ad spend (ROAS). This will help the Adaptive Bidding algorithm optimize bids to achieve the desired outcome.
  • Collect Enough Data: Adaptive Bidding relies on historical data to make bidding decisions, so it’s important to collect enough data before implementing the strategy. This will help the algorithm make more accurate predictions about which bids are likely to result in the highest ROI.
  • Monitor Performance Regularly: It’s important to monitor the performance of your campaigns regularly to ensure that the Adaptive Bidding algorithm is making the right decisions. If you notice that the algorithm is consistently overbidding or underbidding, you may need to adjust your bid constraints.
  • Adjust Bid Constraints: Adaptive Bidding allows you to set bid constraints, such as a maximum bid or target CPA. Adjusting these constraints can help you achieve your desired ROI by giving the algorithm more guidance on which bids to prioritize.
  • Test and Iterate: As with any advertising strategy, it’s important to test and iterate on your campaigns to find what works best. Experiment with different bid constraints, target audiences, and ad creatives to find the most effective combination for maximizing ROI with Adaptive Bidding Strategies in Overstock Advertising.

Conclusion

Adaptive Bidding Strategy is a type of bidding strategy used in digital advertising, particularly in pay-per-click (PPC) campaigns. This strategy uses machine learning algorithms to automatically adjust bids for each ad auction in real-time, based on factors such as user behavior, ad performance, and competition levels.

Hope you have a clear idea of Adaptive Bidding. If you have any confusion or questions about this content please let us know in the comment section. We are ready to help you with those. 
To learn more about  Adaptive Bidding Strategies, you can email us your queries through this email: info@ecomclips.com

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