eCPM Optimization with Burn-up Period
eCPM Optimization with Burn-up Period is designed to select a Campaign and Banner for the requested Placement among other competing Campaigns. This type of eCPM Optimization is based on the Campaigns' Weights and on the effective Cost Per Mile. The Optimization data collection is limited to a certain period of time (Burn-up).
Settings for eCPM Optimization with Burn-up Period are set by a Network Supervisor for the entire network. If network users would like to override the network-wide configuration, they can configure the optimization settings at the Campaign level.
To start using eCPM Optimization with Burn-up Period in your network:
- Log into the Network Supervisor account.
- Click Optimization Settings in the Inventory & Campaigns Settings group of the side menu.
- Choose eCPM Optimization with Burn-up Period from the Optimization Algorithm menu:
- Optimized Traffic Share: Percentage of traffic from the entire network that will be a subject to optimization (will be served to the winning Campaign). The rest of the traffic will be spread among all other Campaigns in your network.
- Estimated CTR: Click-through Rate value that will be used for Campaigns in Start-Up period to calculate the effective CPM. Value range: 0.00 - 1.00.
- Estimated Conversion Rate: Value that will be used for Campaigns in Start-Up period to calculate the effective CPM. Value range: 0.00 - 1.00.
- Burn-Up Period (hours): A period of time for which the optimization data is stored. If we set the Burn-Up period to be N hours, the data for last N Hours will be stored. Value range: (1-336 hours).
- Start-Up period (hours): A period after the start of optimization. During it the Estimated data will be used for traffi distribution. However, the real performance of Campaign is recorded and will be used when the Start-Up period is over. Please note that the Start-Up period will end if the Minimal Clicks or Minimal Conversations value is reached.
- Minimal Clicks / Minimal Conversions: These are the minimum limits for eCPM data to be collected. When either of these values is reached for the Campaign, the eCPM will be counted. Minimal Clicks value is specific for CPC Campaigns, while Minimal Conversions value is for the CPA Campaigns.
Now your network users can turn on the eCPM Optimization for their Campaigns. To do so, they should:
- Log into the network account.
- Go to the Advertisers tab and navigate to the Advertiser > Campaign.
- Click the disclosure triangle to expand the Advanced Settings section and select the eCPM Optimization checkbox:
- Click Save
- Enable the Pricing pane from the right side menu.
- Select the Pricing model for the Campaign in question:
Individual eCPM Optimization settings for this Campaign can be configured in the Pricing pane (these settings will override the network-wide parameters configured by the Network Supervisor).
With the following setup configured:
- Start-Up Period: 20 hours.
- Minimal Conversions: 10.
- Burn-Up Period: 120 hours.
- Subperiod Length: 12 hours.
- Subperiod Weighting Strategy: Linear decline for older subperiods.
The optimization will work in the following way:
- During the Start-Up period of 20 hours, the information about the Campaign's performance is gathered.
- The optimization algorithm gathers data and uses the values for the length of the Burn-Up period of 120 hours.
- Every subsequent hour (15 minutes after a new hour starts) the optimization algorithm re-analyzes the data for the last 120 hours (Burn-Up Period length), re-calculates the effective CPM, and re-distributes the traffic.
- Once the Campaign is active more that 120 hours, only the data for the last 120 hours will be used by the algorithm.
- The Burn-Up period is divided into Subperiods. Length of each Subperiod is set to be 12 hours. This means that the Burn-Up period is divided into 10 Subperiods.
- The Subperiod Weighting Strategy is set to be Linear decline for older subperiods. It means that the newest subperiod has the most impact on the resulting eCPM and traffic distribution. For all older suberiods, the impact decreases with linear dependance. The oldest subperiod has the least impact on the traffic distribution.
Specifics of eCPM Optimization with Burn-up Period
- Whenever this type of optimization is enabled for a certain Campaign, the Estimated CTR or Estimated I2C rates will be used until either a) pre-defined Start-up period is reached; b) minimal number of clicks or conversions is reached.
- eCPM values are re-calculated and updated every hour.
- eCPM value for the Campaign can be reset by clicking the Clear eCPM Optimization Details button on top of the Campaign page. The Estimated CTR or Estimated I2C rates will be assigned to the Campaign and the eCPM data will be re-collected
- Changing the Campaign Pricing Model (from CPA to CPC, for example), will clear the eCPM Optimization data as well.
- Clicking the eCPM Optimization Details button on the Campaign page will show the eCPM values for the current period.
- If the Campaign is turned off for a period of time, its eCPM values are not used for the traffic distribution. When the Campaign is turned on, the eCPM data for the last period (when the Campaign was active) is used again.
Specifics of Subperiods
- For each new campaign the default length of Subperiod is set to be equal to the length of Burn-Up period. The default Weighting Strategy is set to Equal weights. It means that effectively there are no Subperiods for this Campaign.
- It is suggested to set the Subperiod length to be a denominator of Burn-Up period length. This way the total number of Subperiods will be an integer and it will be easier to keep track on the stats.
- Both Linear decline and Exponential decline mean that the newest Subperiod will have the most impact on the traffic distribution, while oldest Subperiod will have the least impact on the traffic distribution. The Exponential decline makes the older Subperiods' impact to decrease faster than the Linear decline.
- The Linear decline and Exponential decline Weighting Strategies do not affect the real eCPM values that can be seen in Analytics. They only make older values less impactful for the traffic distribution.
Traffic Distribution Algorithm
Assuming there is a Placement that has ten Campaigns linked to it, among which five Campaigns have the eCPM Optimization with Burn-up Period enabled, while the other five Campaigns don't.
Once the Placement is requested, Epom platform chooses the suiting Campaign based on their Weights. Once the Campaign is chosen, Epom checks if the eCPM Optimization with Burn-up Period is enabled.
- If not, the Banner from that Campaign is displayed.
- If it is, Epom Ad Server will analyze all the Campaigns that are being optimized, and select the Campaign which has the highest eCPM. Some of the traffic will still be evenly distributed among other optimized Campaigns based on the Optimized Traffic Share setting.
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