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Overcoming The Volatility Of Today's Ad Prices

Nov 13, 2023 - forbes.com
In the ever-changing world of digital advertising, marketers often struggle with ad performance volatility. Prof. Aleks Farseev, CEO of SoMin.ai, believes that understanding the principles governing ad volatility is key to success. He explains that ad performance is tied to Meta's impression distribution AI and a user's recent profile and browsing history. The AI probabilistic inference process used for bidding can result in unexpected changes in ad performance.

Farseev also highlights the trade-off between targeting a specific audience and reaching a broader one. He suggests that advertisers need to balance specificity and reach to optimize their strategy. To overcome challenges such as price volatility and audience size limitations, Farseev recommends focusing on secondary campaign metrics and fine-tuning strategies based on these insights. He concludes by emphasizing the importance of understanding the intricacies of the digital advertising landscape for success.

Key takeaways:

  • The success of digital advertising lies in understanding the principles governing ad volatility.
  • Ad performance is intricately tied to Meta's impression distribution AI and a user's recent profile and browsing history, making it a challenge for advertisers to control.
  • Advertisers must navigate the trade-off between reaching a broader audience and maintaining a targeted and engaged user base.
  • To mitigate common problems in social advertising, focus should be shifted beyond primary campaign metrics to secondary indicators such as the click-to-lead conversion ratio and the conversion rate from click to landing page view.
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