New algorithm to help advertisers predict their brand’s search performance
Academics have come up with a new algorithm designed to help pay-per-click advertisers predict how their brand will perform in search results.
Digital marketing technology company DC Storm worked with mathematicians from Sussex University to explore the relationship between bid, position, click through rate, cost per click and conversion rate. The study confirmed the previously-held belief that search ranking positions have an impact on click-through rates.
But the team of maths experts was also able to develop a model that gives advertisers the ability to predict how their brand will perform following optimisation. The two say the new algorithm will help help advertisers bypass traditional and time-consuming testing.
Seth Richardson, chief executive of DC Storm, said: “The study allowed the team to develop a very valuable equation which advertisers will be able to apply to their PPC activity, giving them the ability to make informed decisions on whether it’s worth investing more to increase their rankings, or on the flip side, to what extent a decrease in expenditure will impact volumes.
“The findings will therefore help advertisers get to their most efficient positions quicker and save them money in the long term too.”
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This will surely be exciting news for any company working hard on their PPC. Being able to predict how adverts will rank has been the Holy Grail for the whole industry for years. Still we should not get too excited until we see actual results from real life examples. But if the algorithm does turn out to be accurate, then surely it will change the PPC market forever.