surplus

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.

Nicolas Kruchten's picture

Peeking Into the Black Box, Part 1: Datacratic’s RTB Algorithms

At Datacratic, we develop real-time bidding algorithms. In order to accomplish advertiser goals, our algorithms automatically take advantage of other bidders’ sub-optimal behaviour, as well as navigate around publisher price floors. These are bold claims, and we want our partners to understand how our technology works and be comfortable with it.