In cooperation with the online marketing agency SoQuero and Prof. Dr. Bernd Skiera from Goethe University Frankfurt, we developed a fully automated bidding decision support system, PROSAD (profit optimizing search engine advertising), and implemented it through the agency’s bid management software. PROSAD maximizes an advertiser’s profit per keyword without the need for human intervention. In order to achieve automation, not only a closed-form solution for the optimized bid is implemented in the system, but also a newly developed “costs per profit” heuristic that enables advertisers to submit good bids even when there is significant noise in the data. A field experiment confirms that PROSAD increases the return on investment by 21 percentage points and leads to substantial profit improvement for the advertiser and the agency.
PROSAD was voted one of three finalists in the Gary L. Lilien ISMS-MSI Practice Prize Competition with jury members from New York University (NYU) and Harvard University.
In case you are interested in reading the full article in which we describe PROSAD in detail, please contact us Nadia Abou Nabout directly. If you don’t want to read the full article, but are still interested in learning more about PROSAD, we recommend you to watch this video.
SEA managers who would like to try PROSAD:
Are you considering using search engine advertising to drive traffic to your website? PROSAD will help you calculate optimal bids that maximize your profit from each single keyword in your search engine advertising (SEA) campaign. A simple version of PROSAD is implemented here and can be used free of charge, without any obligations and the results are displayed instantly.
Professors who would like to teach PROSAD:
Are you considering teaching PROSAD in your undergraduate or graduate course? We are happy to provide you with teaching material including a deck of slides, exercises, and a teaching note for PROSAD. Just contact Nadia Abou Nabout directly.