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Iron: Keyword Grouping Model for
Text Ads Bidding in Paid Search
May 20, 2016
Suxin Guo
Google Paid Search – Text Ads and Product Listing Ads
Traffic Science – Text Ads Bidding 2
Text Ads PLA
Keyword Bidding – Data Scarcity
KW portfolio
KW with
impressions
KW with
clicks
KW with
conversions
Traffic Science – Text Ads Bidding 3
Text Ads Bidding Process
Traffic Science – Text Ads Bidding 4
Algorithm Structure
• Conversion rate prediction
• Revenue Prediction/Grouping
• Market-based feedback loop
Traffic Science – Text Ads Bidding 5
Data Pipeline
Traffic Science – Text Ads Bidding 6
Keyword Features
eBay Search
Data
Paid Search
Performance
Google
Feedback
Gradient
Boosting
Model
Predicted
Conversion
Rate
Keyword
Price
Parameter
Set Φ
Estimated
Revenue
Overall performance: ROI significantly increases by 27.7%
Traffic Science – Text Ads Bidding 7
Thank you!
PRESENTATION TITLE GOES HERE 8

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