When it comes to app retargeting, the use of predictive bidding can have a huge influence on the ROI of a campaign. Predictive bidding analyzes the data from customers, other products, and publishers to place the right bid at the exact right time. Predictive bidding provides agencies and app developers with an extra advantage to strategically better understand their users.
At Simplaex, we’ve designed a predictive bidding algorithm that uses both historical and real-time data from multiple touchpoints: past behavior, payment history, device data and so on. By gathering this data into a single stack, we can then analyze it to get the whole picture of a user. Based on this granular view, the AI is able to predict the value of the user statistically for the advertiser and automatically tailors the bids to meet KPI goals in form of ROI etc.
The more data that flows into our Simplaex learning mechanism, the more accurate the predictions become. And that’s good news for marketers. Better accuracy means more users will see the right advertisement at the right time, for a price which is more tightly correlated to the users future value.
So how is predictive bidding better than audience-targeted campaigns? The approach of targeting audiences of users involves the advertiser calculating her bid based on what she knows about the overall segment of users. From this, the generated bid applies to every user in that segment. So one price for all concept.
In predictive bidding, meanwhile, an individual bid is placed for a unique user in the segment defined by the advertiser. This is a far more efficient method for calculating the right price. In addition to this, our state of the art algorithm allows us to determine the highly valuable users and only places individual bids on these users. What this means for the advertiser is they don’t have to waste money on excessive bids, and can target the highest value users within a segment, as shown below in our infographic.