Description of a Bidding Decision Model
3 important questions on Description of a Bidding Decision Model
What are the six variables for acquisition costs per conversion and number of conversions in the framework for linking bid and profit?
- Conversion rate
- Clickthrough rate
- Number of searches
- Rank
- Bid
- Ad quality
What are the two main points in the intuition on optimizing bids in search engine advertising for lower ranked advertisements?
- High prices -----> low bids
What is the effect on optimized bids when clickthrough rates within ranks are increasing?
- High amount of clicks ------> High bids
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