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.

NEWS: Warner Bros., Lifetime and Others Join Women's Ad Network Race

Warner Bros. Television Group is joining the ranks of large media brands extending female audience reach by building women-centric site networks or aligning with complementary networks. The producer of programs like "The Ellen DeGeneres Show" today is launching news and community site MomLogic.com along with a companion network of smaller sites into which it will sell ads and share content. Unilever is an initial sponsor.

Yesterday Lifetime Networks announced an ad and content-sharing alliance with Glam Media, following Martha Stewart Living Omnimedia's home and decorating content network launch last week. NBC Universal Digital Media hooked up in June with female-oriented Sugar Publishing to sell advertising and share iVillage content.

"Advertisers don't want to leave the comfort of the brands they want to associate with," said Brett Bouttier, SVP digital for Warner Bros. Television Group, suggesting these new online networks allow well-known firms leverage established media brands to help develop new ones.
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