algo-ad-bidding

# Ad Bidding Strategies ## Overview Bidding strategies determine how much an advertiser pays per auction. Range from manual CPC (full control) to automated strategies (Target CPA, Target ROAS, Maximize Conversions) that use ML to optimize bids in real-time based on contextual signals. ## When to Use **Trigger conditions:** - Choosing between manual and automated bidding strategies - Setting up or troubleshooting Target CPA / Target ROAS campaigns - Analyzing bid strategy performance and making adjustments **When NOT to use:** - When designing the auction mechanism itself (use GSP/VCG) - When building a CTR prediction model (use CTR prediction skill) ## Algorithm ``` IRON LAW: Automated Bidding Requires SUFFICIENT Conversion Data Below ~30 conversions/month, the algorithm lacks signal and performs WORSE than manual bidding. Strategy selection depends on data volume: - < 30 conv/month: Manual CPC or Maximize Clicks - 30-50 conv/month: Maximize Conversions - 50+ conv/month: Target CPA - 50+ conv/month + revenue data: Target ROAS ``` ### Phase 1: Input Validation Assess: monthly conversion volume, conversion tracking accuracy, campaign budget, business goal (volume vs efficiency vs revenue). **Gate:** Conversion tracking verified, sufficient data for chosen strategy. ### Phase 2: Core Algorithm **Manual CPC:** Set bid per keyword. Adjust based on: device, time, location, audience performance data. **Target CPA:** 1. Set target cost-per-acquisition. 2. Algorithm predicts...