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Native Ad Auction

Learn how Promoted optimizes native ad auction within search and feed results to provide the best experience for your users.

LENGTH
2:25 min
TAGS
Promote
increase revenue
sales
value
optimization
ad auction
machine learning

Promoted’s ads work by first maximizing user experience in search and feed...

... and then running an ad auction to promote items at the top to increase revenue.

Promoted optimizes ads for incremental sales and bills on impressions

This is called “Optimized CPM” or “oCPM.”

CPC, CPM, and mixtures of these are also supported.

Promoted runs a VCG ad auction to compute ad prices.

To optimize across repeated and variable opportunities

Within a budget, Promoted auto-bids using real-time data.

The ad auction works by

Computing optimized bids using machine learning.

Value of No Ad

First, Promoted computes the value to the advertiser if the item already appears in search or feed. If it doesn’t appear, this value is 0.

Next, Promoted computes the value to the advertiser to every higher position as the Advertiser Bid.

The difference between the [Advertiser Bid] and the [Value of No Ad] is the advertiser bid for each higher position.

The “Event Bid”

Is the value of a sale or click and is set by the advertiser.

The “Event Prediction”

Uses machine learning to predict the probability of conversion or click. It leverages maximization systems used for non-ads.

The “Pacer”

Is an auto-bidder control system across auctions over time.

The Complementary Bid controls the user experience

The Quality Score reuses search and feed optimization systems and adds controls for diversity and exploration.

The Advertiser Bid and Complementary Bid add together

A negative complementary bid makes the ad less competitive and more expensive.

If it is too negative, the ad is trimmed.

Ads targeting leverages existing marketplace relevance rules.

You can also create custom targeting

With User or Request properties that you send to Promoted, like repeat buyer retargeting and device type.

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@ 2023

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iOS is a trademark of Apple Inc. Android is a trademark of Google LLC. Android icon used under CC BY 3.0 license with modifications. React Native is a trademark of Facebook Inc. React icon used under CC BY-SA 1.0 license with modifications. TypeScript is a trademark of Microsoft Corporation. Ruby logo is Copyright © 2006, Yukihiro Matsumoto. Ruby icon used under CC BY-SA 2.5 license with modifications. Python is a trademark of the Python Software Foundation. Java is a trademark of Oracle Corporation. Java icon by SVG Repo used under CC0 license with modifications.© 2022

@ 2023

AboutSolutionsCase StudiesPricingBlog
DevelopersJobsPrivacy PolicyPrivacy & Security FAQsTerms & License
For Sellers & Advertisers
info@promoted.ai
iOS is a trademark of Apple Inc. Android is a trademark of Google LLC. Android icon used under CC BY 3.0 license with modifications. React Native is a trademark of Facebook Inc. React icon used under CC BY-SA 1.0 license with modifications. TypeScript is a trademark of Microsoft Corporation. Ruby logo is Copyright © 2006, Yukihiro Matsumoto. Ruby icon used under CC BY-SA 2.5 license with modifications. Python is a trademark of the Python Software Foundation. Java is a trademark of Oracle Corporation. Java icon by SVG Repo used under CC0 license with modifications.© 2022