Information flow advertising algorithm mechanism: one formula applies to the entire industry!

Recently, classmate Xiao A reported to Qingguajun: I have offered more than 220 yuan, but it has not been exposed yet!

Da Liu, who is in charge of investment and franchise, was even more anxious: Teacher, I was able to run more than 50 sales yesterday, but why is there no sales today suddenly? Who can withstand this without conversion?

What other problems could there be? It’s because you don’t understand the internal algorithm mechanism!

Only by understanding the core algorithms can we seize the opportunities

The so-called business world is like a battlefield. According to Sun Tzu's Art of War, "Know yourself and the enemy, and you will not be in danger in a hundred battles. Know yourself but not the enemy, and you will win or lose. Know neither the enemy nor yourself, and you will be in danger in every battle."

With the popularity of algorithm mechanisms, smart bidding has become the most important way to acquire customers and bid in the information flow industry.

In the past, optimizers only needed to make an average bid for the people within the targeted range. However, with the addition of a system algorithm mechanism, smart bidding has brought about a disruptive change in the bidding method . The system is based on the conversion population and makes different degrees of allocation according to population labels.

How can we win this “man vs. machine war”? Knowing ourselves and our enemies, we need to understand the algorithm mechanism behind the system and seize the initiative!

ECPM = click-through rate * conversion rate * bid * 1000

Different from traditional advertising, information flow is a form of advertising that is interspersed with news information and actively displayed to visitors.

Before we delve into the secrets of advertising formats, we need to understand a crucial formula!

ECPM determines whether an ad can be displayed in front of visitors and its display position. This indicator can explain the question of “why I see competitors’ ads every day but not my own”.

There are three factors that affect the ECPM indicator: click-through rate, conversion rate, and bid! If you want to increase your click-through rate, you need to improve your CTR (click-through rate) and creative appeal to make it eye-catching!

The page is an important factor affecting the conversion rate. Whether your visitors can be converted depends on it! So you need to increase CVR (cost per conversion rate) and improve page conversions.

In terms of bidding, we can increase CPC (cost per click) , seize premium positions, and realize “I am the boss of my own territory”!

One thing to note here is that the above three values ​​are the values ​​that the system estimates for your current delivery based on previous delivery results in the database one day after or before your delivery.

For example, if you write a creative, the system will make an estimate based on your creative tags, materials and copy. If it estimates that you can get a click-through rate of about 2%, the system will first expose you at this click-through rate, and ultimately calculate based on the actual click-through rate. The actual click-through rate is basically an average reference value within a day, not the click-through rate you got after running for an hour. Remember!

A few words about "click rate"

The higher the ad ranking, the higher the click-through rate.

There are three factors that affect click-through rate: bid, creative, and the intention level of the targeted group . I won’t explain the first two in detail, you all understand. Regarding the intention level of the targeted group, we refer to the intent words in Baidu's information flow. Whether it is broad or precise, it will affect the related intention level or click-through rate.

The page is the "mother" of conversion rate

If your conversion effect is not good, there must be something wrong with the page. If there is a problem with the page, the creativity will be affected! The creative ideas we usually come into contact with can be roughly divided into "hard advertising" and "clickbait".

Because hard advertising is pure advertising, its click-through rate will be low, but the conversion rate is guaranteed; on the other hand, the soft advertising of "title party" has a high click-through rate, but the conversion rate is not optimistic. Looking at creativity dialectically, we can combine different effects, match conversion rate and click-through rate , and achieve "every inch has its own strengths and weaknesses".

For example, if you are not confident about the advertising page you are in charge of and your boss has made it clear that he does not want to make any changes, then you can use clickbait titles to attract broad traffic through soft ads, increase your click-through rate, and also get exposure; on the contrary, if your page is good, then I recommend that you use hard ads to obtain high-quality traffic revenue, which is also a good choice!

The initial bid should be as high as possible

As we mentioned in the previous article, the initial bid must be high because the system allocates traffic to you based on the estimated click-through rate and conversion rate. Bidding is an active behavior , so the initial bid will directly affect your core competitiveness . If you bid a high price in the early stage, your ad position will definitely be at the forefront, because optimizers who love to bid high prices will not have too bad luck!

Since ECPM is multi-dimensional data , when we cannot control one of the dimensions, we can consider adjusting other data to affect the overall ECPM value, so as to achieve “a single move affects the entire body” .

FAQs

After talking about the analysis method of ECPM, our conversation was interrupted by a burst of QQ reminder sounds. It turned out that several students in the information flow learning group encountered "trouble". Teacher Ke Nan skillfully opened the page and answered every question with great enthusiasm.

Question 1: When operating, I feel that the intent words are already very accurate, but there is still consumption without conversion, and my click-through rate is also OK. What is the problem ?

Answer: There is a problem with the page.

Question 2: The page conversion rate is relatively poor, but my boss said that the page cannot be changed, so I have to use this page. What should I do?

Answer: OK, you can go for broad targeting, offer a low price and spend a few cents to run it.

Question 3: I’m working on headlines, and I’ve used the system to recommend the broadest targeting, but my conversion rate is still low?

Answer: Then you can create clickbait titles to increase their click rate!

Question 4: I have raised the price three or four times today, from 100 yuan to 300 yuan, but there is still no exposure and no conversion. What went wrong?

Answer: You cannot get better results by focusing only on bidding. I suggest you consider other dimensions.

After answering these questions, the teacher added a few more points when he saw that I was confused: "In fact, the ECPM value is for a certain unit , which is a value of your bidding level. Because the bid is made at the unit level (the planning level mentioned in Toutiao), the level we are talking about is the bidding dimension. The ECPM value of each bidding level is calculated separately. "

author: Quail eggs

From: Houchang College