Multi-network bidding strategies
2014-07-06, 05:00 PM,
From recently, I have been doing a small project where the goal was to optimize my inventory and use multiple networks to fill it. What started as, if no offers for country XX try next network now it is includes a bidding module which compares the offers in real time and sorts them by EPC or CR. The idea is to get a number of offers from each network do the math and show the user a fixed number of best performing offers in real time.

A few definitions:
CR = (Conversions / Clicks) * 100
EPC = (Revenue / Clicks)
Revenue = Payout * Conversions
Now since not all APIs provide their CR value, from the definitions above, we can assume that
eCR (estimated CR) = (EPC / Payout)*100;

Now to the fun part, the bidding strategies or how to sort the offers and show the best 5 or 6 to the user.
  • The Filler - no sorting involved, if primary network has no offers, get them from the next network (optimized for page load speed)
  • EPC Only Sort - Sort the offers by EPC in decreasing order
  • EPC Sort + Payout - Sort the offers by EPC in decreasing order + Payout in decreasing order
  • EPC Sort + Payout - Sort the offers by EPC in decreasing order + Payout in ascending order
  • CR Sort - Sort by conversion rate / estimated CR
  • Payout Sort - Greedy but risky
  • Another....

My question is, if it was up to you how would you like to sort the offers, having in mind that the information provided is EPC and Payout. I am sorry if this is in the wrong forum, this one seamed most appropriate.
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2014-08-19, 11:41 PM,
Here is a small update on the subject with the current optimization strategies so far:
  • Optimize by EPC — Offers with highest EPC will be shown first.
  • Optimize by EPC + Mix in new offers — Offers with highest EPC will be shown first followed by a few new offers (works with 3+ offers, otherwise standard optimize by EPC is applied).
  • Optimize for Conversions — Offers with highest conversion rate (estimated) will be shown first.
  • Sort by Highest Payout — Only payout will be taken into consideration. Greedy.
  • Filler — Get offers from first network, if none continue to next (optimized for speed).

[Image: 2wly1xs.png]

All of you are welcomed to suggest any other strategies that you wish to be implemented.

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