• Comment
• Print Article
• Email
• Permalink

Optimization, Myth or Reality?

Written on

June 13th 2007

Author

by Erin Madorsky  |

Feed

   XML Feed

As highly and rapidly measurable as online performance is, “optimization” signals the process involved in gradually improving a campaign to make both publisher and advertiser happy with performance. It has become a buzzword for campaign management that receives so many verbal hits per day it is often difficult to ascertain what really is happening, if anything, when somebody says, “I’ll optimize performance for you.” The notion of optimization was born alongside the development of technology to maximize ad delivery efficiency.

WordNet Dictionary: “The simultaneous optimization of growth and profitability”; “in an optimization problem we seek values of the variables that lead to an optimal value of the function that is to be optimized.”

Not all ad impressions convert alike and our industry is constantly improving its ability to determine what impression to serve when and to whom in order to maximize response. Optimizing ad serving technology can be employed both by advertisers and publishers but the party utilizing the optimization technology determines what metric is considered king in the optimization equation. Publishers optimize delivery of supply limited ad impressions to raise effective impression metrics; advertisers optimize delivery of supply limited conversions to lowering effective conversion metrics. In the process, campaign optimization, whether manual or technologically driven, has become a standard expectation for direct response marketing campaigns.

American Heritage Dictionary: “The procedure or procedures used to make a system or design as effective or functional as possible, especially the mathematical techniques involved.”

A good account manager will be able to locate the performance utopia that sits between publisher and advertiser. Like all good things, a tool in the hands of the wrong person means diminishing the positive attributes of that tool. As the word implies, rendering something to an optimal state means that state is not yet optimal. Overusing the optimization card without imparting positive campaign change risks degrading the meaning of the process to the point where it becomes undervalued in buying decisions. I hope that by establishing some insight into the process we can preserve the integrity of optimization as a performance tactic so that it does not begin to signify a stall tactic for impending campaign cancellation. Who can really optimize a campaign? When good account managers optimize your campaign you will find they are experts of their product as well as yours. They know their ad serving technology as well as they know yours. They also know your competitors. They are keenly aware of your performance metrics and understand not only how you are being measured but how your company makes money. The right account manager will serve as a liaison between the advertiser and the network, and will ensure the right moves are made to satiate the network’s needs while simultaneously driving as many conversions as possible within the advertiser’s target metric zone.

Oxford Dictionary: “Make the best or most effective use of (a situation or resource).” What can be done to optimize?

Optimization reviews performance against changeable variables. It looks for patterns of conversion that dictate growth potential. All aspects of a campaign should be considered in the optimization process including creative, frequency, targeting, daily capping, geo targeting, time of day and day of week filters. Destination URLs should be examined for call-to-action orientation and compared to competitors for industry-standard design considerations. If pixel tracking is available, use it — the more data available for analysis, the better.

Other tips and guidelines

Don’t start optimizing too soon. Every network needs a certain amount of exposure to a particular advertising message in order to gauge response. Beginning too early can kill nerves but won’t positively impact performance. Also, be specific when communicating about optimization. If something is not working make sure to define the problem as either a volume or return issue because the steps taken to address each are often contradictory. Ask account managers to define their optimization process for you. Make sure you get specifics in return. See what moves they plan to make and allow some leeway for their own network expertise. Be willing to read gradual improvements as movement in the right direction and allot more time to campaigns that show progress.

The first recorded usage of the word optimize didn’t appear until the 19th century, after the industrial revolution was in full swing imparting massive social changes to the world. Like the industrial revolution, the Internet revolution continues to empower man to improve his surroundings, to raise expectations, and to positively impact communication, all with an eye on economics. Campaign optimizations are not just about pretty reports. The process takes thought, creativity and performance ownership. Good account managers will not be afraid to put themselves into this process. All publishers alike will benefit from account managers working in this fashion because when a publisher executes upon promised deliverables that include campaign optimization, the integrity of the word will result in building trust with advertisers and agencies that will increase expenditures across the board.

Sometimes when words become over used they loose their meaning. The word optimization has almost become a cliche. Like all words that become cliche, new words spring up to take their place and gain instant credability. Until that time the best thing we can do is bring value to advertisers and publishers through real optimization, maybe we can save the word and make it meaningful.