CPA Optimizer
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Written by Caitlin
Updated over a week ago

Introduction

The CPA Optimizer is a specialized algorithm that uses machine learning to adjust the bid price for a Campaign or Creative in real-time based on the target CPA (TCPA). In other words, this technology will analyze your TCPA for a particular Campaign or Creative, then adjust the bid amount for each auction to ensure that you get the highest volume of impressions, with the users most likely to convert on your offer, while remaining within your TCPA range.

How does it work?

The CPA Optimizer works to find the perfect balance between the traffic you buy and the number of conversions you get, in order to keep your average CPA in line with the target CPA you specify for each campaign or creative.

When the campaign or creative's average CPA becomes higher than your target CPA: the system will reduce the bid amount resulting in fewer impressions, but a lower CPA and CPM.

When the campaign or creative's average CPA becomes lower than your target CPA: the system will increase the bid amount resulting in more impressions and conversions!

In addition to adjusting the bid prices in real-time based on current the current CPA, the optimization algorithm will analyze the likelihood that each user will convert based on attributes of previous users who have converted. With this piece, OddBytes can help you increase the bid amount and win more auctions specifically for the users that have the highest odds of converting on your offer!

Example:

A campaign has the CPA Optimizer enabled and has a TCPA of $3.00. After an initial launch period, we see the average CPA at $2.30. The system will begin increasing the bids so that the campaign wins more auctions. As the system analyses the users, it will bid even more for users that have a high likelihood of converting, and less for users that have a lower chance of converting.

After a day of increasing volume, we may see that the new average CPA is $3.40 and it overshot the target in order to win a few users with very high chances of converting. To make up for this, it will begin bidding less which will reduce the total number of impressions, but also get the CPA back down to its target range.

CPA Optimizer's Bidding Strategy

Unlike a classic bidding strategy where bid prices on keywords are fixed and predefined, the CPA Optimizer will make decisions in real-time based on the CPA adjust these bid prices if the need arises. In this way, the CPA Optimizer gains more flexibility and is able to push for more impression volume while keeping your CPA on track.
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Another crucial difference is that CPA Optimizer is capable of calculating the probability of each individual user converting and bid more for users with better odds.

Please Note: With the Optimizer's bidding strategy, if the probability of conversion is high, the charged price may be higher than the Max Bid set in the platform.

How To: Add the CPA Optimizer to your Campaigns or Creatives

Configuring the CPA optimizer is a very simple process that can be achieved by following the steps outlined below:

Note: In order to apply the CPA Optimizer to a Campaign or Creative, it must first have tracked 30 conversions.

Campaign Level:

  1. In the OddBytes Platform, navigate to the 'Manage Campaigns' page by selecting it from the navigation menu to the left.

  2. Select the Campaign you wish to enable the algorithm on and click on the pencil icon on the far left side of the row.

  3. Toggle the option to enable CPA Optimization.

  4. Select the tracking event that is being used to indicate a conversion for this campaign.

Creative Level:

  1. In the OddBytes Platform, navigate to the Manage Creatives page by selecting it from the navigation menu to the left.

  2. Select the Creative you wish to enable the algorithm on and click on the pencil icon on the far left side of the row.

  3. Toggle the option to enable CPA Optimization.

  4. Select the tracking event that is being used to indicate a conversion for this Creative.

FAQ

For additional questions about the CPA optimizer, please click here for our CPA Optimizer FAQ.

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