Teikametrics, based in Boston, announced Monday the addition of a solution to Auctions for Amazon advertisers using Teikametrics's Flywheel campaign optimization platform on Monday.
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According to the company, the auction algorithm is optimized by automatic learning and analysis of advertising data, transaction data and, importantly, the cost of goods sold data. The algorithm analyzes bids every hour to make the necessary adjustments. "Amazon is providing more and more access to data and API opportunities, as well as more and more ad blocks," said Alasdair McLean-Foreman, CEO of Teikametrics by phone Monday. ]
Teikametrics refers to Flywheel as a retail optimization platform. "We consider it to be a new category," McLean-Foreman said. McLean-Foreman is a different use case, because the transactions related to advertising commitments are made directly to Amazon, unlike ads on Google or Facebook. Platform using machine learning to optimize pricing, operational and inventory performance for Amazon advertisers.
"We can see transactions and profitability. Brands do not report the cost of goods sold to Amazon, but they give it to us, "explained McLean-Foreman, . With this combination of data (ad, transaction and cost of products sold), the algorithm optimizes offers to improve profitability.
McLean-Foreman compared the time-calling algorithm to a digital thermostat capable of regularly controlling and reacting to climate change to maintain a stable ambient temperature. "Auctions do not change every hour by default," he said. Instead, it checks the status of offers more regularly for more consistent optimization.
"The longer your offer, the less it is optimized, the more it will cost you," said McLean Foreman. The scale of the data – $ 6 million in retail sales was spent on the platform – and the frequency of optimization means that its hourly algorithm can generate millions of profitability gains for sellers, said McLean Foreman.
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Hourly auctions are available for all sellers using Teikametrics Flywheel. According to the company, it is particularly ideal for large volume auctions in vertical markets such as consumer electronics, household goods, and clothing that "will benefit the most in the first few days of the year." . auctions can be halved.
The lower volume areas can also get more information about bids and keyword performance faster thanks to the increased granularity of the hourly feature.
About the Author
Ginny Marvin is the editor-in-chief of Third Door Media and manages the daily editorial operations of all our publications. Ginny writes on paid online marketing topics including paid search, paid social events, targeted posting and retargeting for Search Engine Land, Marketing Land and MarTech Today. With over 15 years of marketing experience, she has held senior management positions in both in-house and agency management. It can be found on Twitter under the name @ginnymarvin.