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Nicolas Kruchten's picture

Peeking Into the Black Box, Part 3: Beyond Surplus

In this post, I show that in order to maximize the economic surplus over a whole campaign, the quantity you should look at on an auction-by-auction basis to decide when to bid is actually the expected return on investment (ROI) rather than the expected surplus. At Datacratic, we actually switched to an ROI-based strategy about a year ago but I didn’t get a chance to follow up with a blog post until now.