NEWS: Algorithms White Paper

November 14, 2007

Algorithms White Paper

Today we launched our new website, which introduces the new Efficient Frontier logo and corporate identity. As part of the launch, I wrote a white paper about the algorithms behind our technology. The paper can be downloaded here.

Efficient Frontier's algorithmic approach involves click modeling and revenue modeling for every keyword in a portfolio, and then chooses the optimal bidding strategy based upon those models. Without such models, it would be impossible to know what level of performance your campaign could achieve just by changing your bids.

Researching the white paper was a fascinating process - I looked into the history of mathematics, computer science, and economics in order to explain the application of modern portfolio theory to search engine marketing. Our founder, Anil Kamath, had a unique vision that pioneered much of today's thinking behind search marketing optimization. If the white paper whets your appetite for more, readthis interview with Anil by Eric Enge.

Ed: Sensitivity analysis of costs to impressions. Thus, choose cheaper keyword to save costs.