NetApp Optimization Training

May 2020
 Part 1: Pre-Launch

• Goal Setting

• Pacing

• Frequency

• Koa Recommendations
Goal Setting
Understand which KPI makes the best sense based on campaign type,
channel, and strategy

Channels Strategies KPIs

Awareness

UPPER FUNNEL
Connected TV*, video, ✓ Viewability
Contextual, Grapeshot,
Goal: Discovery audio, high impact and audience (demo,
✓ Reach
rich media, native, ✓ OTP
interests), PMP deals
Identifying relevant audiences display ✓ Completion rates
to widen prospecting pool

Consideration ✓ Broad CPA

MID-FUNNEL
Audience (behavioral), ✓ CPL
Goal: Impact High impact and rich location-based, KoaTM ✓ CTR
media, native, display Audience Predictor, KoaTM ✓ CPC
Measuring broad user Audience Excluder, IP ✓ VCR
engagement ✓ Viewability

Action

LOWER FUNNEL
✓ Specific CPA
Goal: Direct response Retargeting,
✓ ROI
Display Household ExtensionTM,
✓ ROAS
Office Extension
Measuring trackable ✓ Offline attribution
events & actions taken
by your audience
Pacing
 What is Pacing?
Flight Start Flight End

Pacing Performance Insights

• Pacing focuses on making sure the campaign spends in full and hits the most possible users so that data can be
gathered to create optimizations and drive performance.
• This should be the main focus at the start of the campaign and adjusted throughout the campaign.
 How to Control Pacing

1 Frequency Caps: Limits the number of impressions one user is served over a time period

2 Base Bids: Starting price of a bid before taking into account bid factors
Max Bids – Ceiling/Upper Limit

3 Pacing Setting: Pace Evenly, Pace Ahead, Pace to Daily Spend Cap
 Pacing: Pace Ahead

Campaign Settings Pace Ahead Across Campaigns

• Automatically updates your budget on a daily basis based on
needed spend + 20%
• This allows you to heavy up your campaign pacing to help your
campaign spend in full
Benefits

• Optimize faster by gathering more data, more quickly

• Allow conversions to accumulate earlier in the flight

• Avoid underspend as CPMs and competition heats up at the end of

months, quarters, and years
 Pacing: Potential Spend
Ad Group Potential Spend
• Potential spend helps traders answer “how much
At Campaign Level View could this ad group spend within its current
settings?”

• Potential spend considers ALL current targeting

parameters of an ad group - base bids, frequency
caps, win rates, bid factors, blocks, etc.
• Within the Megagon Ad Group Pacing Tile, see how
Within the Ad Group: Pacing Tile much potential spend was available to your ad
group yesterday, and how that compares to your
needed spend
 Budget & Pacing: Fluid Budgets

Ad Group Setup
• If budgets are fluid between tactics, set up each ad group
budget to equal your campaign budget.

• For example, this ad group has a lot of potential spend, but

we are only spending ~$427/day.

• You don’t have to worry about overspending because we

won’t spend more than the campaign caps.

• By setting up the campaign this way, we can take advantage of

AutoAllocator prioritizations to allocate spend to the ad
groups with the best performance.
 Budget & Pacing: AutoAllocator

Campaign Setup • Allows you to prioritize spend in top performing ad

groups when you have fluid budgets

• Push budget to your priority ad groups and waterfall

spend down to lower priority ad groups, if there is
daily budget left over

• The system learns the potential spend of each ad

group over time and funnels the campaign budget
appropriately

• This feature helps the ad groups collectively pace to

the campaign daily target

• When you turn this on initially, all ad groups will be

set to priority 1
Bidding
 What is a Base Bid?
• The base bid is the starting price of a bid before taking into account bid factors that is submitted into an
auction.

• If there are no bid factors in place, an ad group will bid the base bid for every impression regardless of
where the max bid is set
 The Difference Between Base Bid and Max Bid

• A Max Bid is simply a ceiling for which you are

willing to bid for an impression in an ad group
• It is not a multiplier, so if you have no bid factors
at all, you will always bid your base bid
• Max Bid is based on raw media cost only (does
not account for data costs, fees, etc.)

• Best Practice – set Max Bids about 3x of Base Bids

Programmatic buying auction: 2nd price auction model.

You pay one penny higher than the second highest bid.

New topic in programmatic: 1st price auctions

 1st Price Auctions and Predictive Clearing
Koa Predictive Clearing Price analyzes historical clearing prices by site and automatically adjusts
for the optimal bid:
- Pay exactly the right price for media
- On average, we're seeing a 15% reduction in CPMs on first price auctions
- Get the same scale and performance without paying a higher CPM price
Frequency
 Frequency Cap Based on your Audience Size and Strategy

A Frequency Cap (f-cap) limits the

number of impressions a user will Upper funnel tactics typically offer
see over a certain amount of large potential audiences; your focus
time. It is a ratio of impression / Branding should be to “cast a wide net” of
hours per device. $1 1/168 users to reach with your message.

If I want to reach more people, I

need to decrease my frequency
$3 Prospecting
cap (e.g. select 1/168) to limit
1/24
how I reach individuals.

If I want to reach people more Mid Funnel 1/8

$7
often, I need to increase my
frequency cap (e.g. select 1/1). Lower funnel tactics tiled small
potential audiences; your focus
$15 RT 1/1 should be driving interested users
toward conversion.
 How the F-Cap Numerator Affects Delivery

3/3 Delivery

1/1 Delivery

• At first glance, a 3/3 f-cap and a 1/1 f-cap look to be equally as aggressive but there is a difference in
how they are delivered. In theory, an ad group with a 3/3 frequency cap could reach a user 3 times in
one minute, while an ad group with a 1/1 frequency cap cannot.
• 1 numerators allow you to space delivery better and are better for performance.
 Cross-Device & Frequency
Targeting Attribution

Serve ads to the same user across multiple devices and channels, adding Free of charge, select a cross-device partner for conversion attribution to report
more scale to your first- and third-party audience ad groups. back on the performance of your targeting by tracking the user journey and any
resulting uplift.

Frequency: Every person in our system is assigned a unique identifier called a TDID, which allows for unique user frequency capping across linked devices.
Koa Identity Alliance: Our unified cross-device vendor graph solution combines the graphs of the leading cross-device vendors for even more targeting scale
and better attribution.
Koa Recommendations
 Koa Recommendations
Koa Recommendations runs off our
auto-optimization engine. It will
surface daily recommendations to
help eliminate waste and pay the
right price on inventory based on
your ad group goal/KPI

Enable at the ad format, site, device type, and supply vendor dimensions
Auto-Apply Koa Recommendations
 Part 2: Post Launch

• Delivery Checks

• Optimization Tactics
Delivery Checks
 Am I Live?
“Are we bidding and winning impressions?”

Determine this from the Ad Group screen.

Filter insights to “Today” and note whether the ad group just launched is bidding and winning.
This dashboard is updated every 15–30 minutes
What Can I See in the Reporting View?
 The First Few Days of a Live Campaign
“Are we pacing as expected?”

Within the Ad Group tab, toggle to the Pacing view to see if strategies are projected to spend in full.
In order to see more in-depth stats on delivery, hit the button with 3 dots to expand the ad group

Go-to metrics when looking at the delivery of your campaign:

• Projection: How much of your total ad group budget are you • Needed: How much daily delivery is necessary for your ad
projected to spend. group to spend in full.

• Daily Cap: The daily cap of your campaign (if you have a manual cap, • Potential Spend: How much you could spend with unlimited
this may be hindering delivery). budget based on your targeting criteria.

• Yesterday: How much you spent yesterday.

 Bidding Snapshot

What price am I clearing? Win Rate

Within every ad group ,you will have a tile at the top Are my win rates appropriate?
labelled “Bid Health” that contains the following four
metrics: Win rate= impressions won divided by
impressions bid on.

Assuming you are pacing, some general rules

for win rates per strategy are as follows:

Audience Discovery: 5%
Broad Prospecting: 5–10%
Intent Prospecting: 10–30%
Retargeting: >50%

These stats will give you a snapshot of your bids and

whether they are flat or dynamic.
Optimization Tactics
 Typical Optimization Workflow

1. Trim Inventory that doesn’t perform

2. Pay the Right Price – use TTD’s bid factoring

3. Spend money where it works

 #1: Trimming
Statistical Significance: Have I seen enough impressions to make an educated decision?
- Use an impression threshold to identify if a grain or metric has seen enough decision to be statistically significant

Impressions or Spend
Imp. Threshold
Clicks or Convs
X 2

Will this limit my scale too much?

- Try avoiding cutting over 20% of your inventory (i.e. total spend or impression count) at any one time
• If you do, monitor spend/pacing
• Use Potential Spend to identify if you have room for large cuts or should be more conservative
• Use RAM score to help identify dimensions where you could get more aggressive with your bids (i.e. RAM
score is high, close to 100)
 Guidelines for Trimming

No Brainers: Cut any pocket that has served impressions over your
threshold and has had 0 clicks or conversions

On the Fence? Sort by KPI highest to lowest (lowest to highest

depending on the KPI)
• Cut worst performers
• Cut anything that is 3x your KPI
 #2: Bid Factoring

An Example Using Reporting:

Goal CP𝐴 70
• If the goal CPA is $70, to find the right bid adjustment for Below the Fold, take = = 1.8x
BTF CP𝐴 38.62

• *one thing to note:

- For CPA and other cost based goals, the calculation is goal or average divided by actual
- For CTR and other rate based goals, the calculation is actual divided by goal or average
 How do bid factors translate into the UI?

For below the fold, we calculated a bid adjustment of 1.8x

This change can be made via bulk editing or by adding a “Fold Placement” optimization tile:
 Multiply Your Base Bid to Help Pay the Right Price

Base Bid Los Angeles PC’s 300x250 Format Unique Bid

$15 × 0.9x × 0.9x × 1.1x = $13.4

In other DSP’s, paying a unique price by location, by device, and by ad format traditionally requires building an entirely new
tactic or line item.

That means paying a unique price for 75 different cities, 4 different devices, and 6 different ad formats would require 1800 line
items in a typical DSP, but only one ad group within The Trade Desk.
 #3: Spending Budget Where it Works

What this means:

▪Find pockets of inventory where performance is great. If the win rate is low, bid more
aggressively to win that inventory

▪If the win rate is high (65% +) and performance is still outstanding, carve off some budget, put it
into a cloned ad group targeting just that inventory, and force the system to spend as much as
it can on that strategy
Be Logical about Bid Factors - Lever Sizes

Thinking about cutting an SSP? Pull

Site under SSP in the Pivot and see if it

Small is only a few sites that are dragging

down performance

Medium

Large
 Optimization Lever Sizes
Optimization Levers

LARGE
User Day of
Ad Format Device Type Supply Source Audience Country
Week

MED
Fold Placement Browser User Time of Day Site Category Data Elements State or Region

SMALL
Operating
Creative Site City or DMA
System
 Be Democratic in Optimizing
Tip: Keep an optimization log – use
Tip: Some campaigns will respond
the “Notes” section in the activity
more favorably to specific levers. If
tile for this, it can be beneficial for
Look at all possible “levers” you are having success with geo
both troubleshooting purposes and
you can pull and see which then make sure to check it each
gaining insights on what changes
ones could improve time you pull reports.
worked to get your closer to your
performance
goal.

Make changes and monitor Take full list of possible

performance over the next changes and choose 2 or 3
couple days. After about a changes to make
week, repeat the process.
 Only Ten Minutes to Optimize?

On-Target
Grains Delivery Click Based Conversion Viewability Completion Rate
Percentage

Base Bid X
Fold X X X
Frequency X X X
Ad Format X X
Sites X X X X X X
Recency X
Data Element X X
Time of Day X
Supply Vendor X X
Technologies X X X X
Geo X
Helpful Standard • Reach and • Click Optimization • Conversion • Viewability • Video and Audio Please use
Templates Frequency Optimization Optimization • Initials Insights Nielsen/Comscore
• Inventory • Time and Day Report reporting directly
Performance Performance from the UI.
• Geo Insights
• Technologies
 What Grains Matter?

1st Party 3rd Party Non-User

1. Recency – Recency 1. Data Element – Contextual Geo Targeting
Schedule Trim/Replace 1. Site 1. Geo
2. Fold - BTF drives less clicks 2. Fold – BTF drives less clicks 2. Site Category 2. Site
3. Site/Site Category – 3. Site/Site Category – 3. Fold 3. Site Category
White/Black List White/Black list 4. Device 4. Fold
4. Device – Fat Finger Effect 4. Device – Fat Finger Effect 5. Browser 5. Device
Clicks 5. Browser – IE7 has older 5. Browser – IE7 has older 6. Time of Day 6. Browser
users users 7. Geo 7. Time of Day
6. City – Trim away 6. Geo – Trim away
7. Time of Day – Overnight 7. Time of Day – Overnight
hours? Hours?

1. Recency – Recency 1. Data Elements – Contextual Geo

Schedule Trim/Replace 1. Site 1. Geo
2. Time of Day – When is your 2. Site/Site Category – 2. Site Category 2. Browser (Safari)
user on White/Blacklist 3. Browser (Safari) 3. Site
3. Geo – Where are your users? 3. Geo – Top Geos? 4. Time of Day 4. Site Category
4. Site/Site Category – 4. Time of Day – 5. Geo 5. Time of Day
Conversions White/Blacklist Work/Personal 6. Fold 6. Fold
5. Data Element – Pixels 5. Browser/OS – Work/Personal 7. Device 7. Device
performing? 6. Device – Long Process or
6. Fold – BTF might work better does not track
Thank you