Rules-Based Optimization in MGID Ads

This article describes setting up the rule-based optimization in the MGID Ads system.

Introduction

Auto-blocking rule

Fixed bid rule

Auto-bidding rule

Optimization Rule Set

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Introduction

Campaign optimization requires constant monitoring and statistical analysis. The goal of which is to bring the actual value of the campaign ​​closer to the target value, for example, by adjusting the CPC per source or disabling underperforming ads. However, campaign optimization is time-consuming and requires a lot of manual work.

By automating campaign optimization, you can save valuable time and resources, while also removing the risk of human error and reducing time spent on campaign management.

MGID’s Rules-Based optimization tool has been designed to automate the process of advertising campaigns. With optimization rules extending to all possible conditions, this feature analyzes campaign performance with each statistics update, as opposed to scheduled checks.

In addition, Rules-Based Optimization supports three types of rules:

• Auto-Blocking: blocks the widget/sub-source, provided that the specified condition is met.
• Auto-Bidding: changes the CPC coefficient based on the target value of the specified parameter (the coefficient itself is determined by the rule).
• Fixed Bid: changes the CPC coefficient to the value specified by you, provided that the specified condition is met.

Now, let’s focus on the process of creating rules and take a closer look at each type.

Follow these steps to create an optimization rule:

• Click/open the campaign you would like to create a rule for;
• Navigate to the Widget optimization section;
• Click Create rule;
• Select a specific rule from the list.

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Auto-blocking rule

1. Select the rule intended to optimize your desired widget or sub-source — we recommend creating two optimization rules for both options.
2. Set the limit, which is based on the number of clicks or the amount spent. 

Once the limit is reached, the rule prompts the optimization rule. As for the amount spent limit, we recommend setting a threshold for launching the rule at the x2-x3 rate of the target conversion cost per widget and the x1-x2 rate per sub-source.

3. Select an indicator. Analyze which rule will carry out optimization and specify at which conversion stage this should be done. For example, you may select the Conversion Cost indicator, which will block widgets once it hits a certain threshold. 

4. Specify the condition under which the rule will determine whether to block or not. Following the example in Step 3, you can turn off all widgets that made conversions on a cost higher than $10, by selecting the Conversion Cost indicator (seen in Step 3) and specifying the Higher than $10 condition in this step.

Available indicators	Available operators
Conversion Cost Conversion Rate Conversion Count Revenue Profit ROI EPC	Lower Higher Between Not between

5. Select the period for the optimization to be carried out. When the rule selects widgets/sub-sources that have exceeded the limit on the number of clicks or the amount spent, it will take into account the data for this particular period, not for the entirety of the campaign’s run. In addition, it is for this period that the actual values ​​of the indicator chosen will be calculated in order to compare them with the blocking condition and determine what should and should not be turned off.

6. Select the action that the rule should take, provided that its condition is met.

There are two actions available:

• Block: The widget/sub-source will be blocked and the rule will not take it into account anymore.
• Block otherwise unblock: The widget/sub-source will be blocked, but the rule will continue to take it into account, and in the case the rule condition is no longer met, the rule will unblock it.

We would recommend using the second option in two cases. The block otherwise unblock action is useful when the conversions (or the data on the conversion earnings) is displayed with considerable delay or when a rule is created in a campaign in which you have already blocked many of the widgets manually. This way, the rule will check the blocked widgets once only to see if they should have been blocked.

Here is an example of the setup rule:

To save the rule once the configuration has been completed, click the blue tick button.

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Fixed bid rule

This type of rule is set up just like the blocking rule. The only difference is in the action. The rule should run when the specified condition is met. Below is an example of the Fixed Bid rule in which the rule is set to the specified value of the CPC coefficient.

To save the rule once the configuration has been completed, click the blue tick button.

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Auto-bidding rule

The Auto-bidding rule also controls the coefficient, but unlike the Fixed Bid rule, it does not specify what coefficient is to be set under what condition. 

In fact, the Auto-bidding rule calculates the required value based on your campaign goals. The target value can be specified for one of two indicators: conversion cost or ROI.

The additional action at the end of the rule advises the Auto-bidding rule what to do when the target value of the indicator can be achieved only if the coefficient values or the CPC are below the minimum possible values ​​in the system. 

For this additional action, there are two options: to block the widget/sub-source (because the target value of the indicator cannot be obtained) or to uphold the lowest possible rate to keep the traffic volumes.

We have ensured, however, that the rule does not increase the CPC when the condition allows it. Thus, the rule will not increase the CPC coefficient if the current campaign reach for a widget/sub-source is very high.

To save the rule once the configuration has been completed, click the blue tick button.

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Optimization Rule Set

A rule set is a combination of rule types based on the target you set. If you are new to Rules-Based Optimization, this option is a good place to start to see how these rules can be used both separately and together. 

Below, you will find an example of such settings.

Additionally, there is a function to add optimization rules for quick use.
To turn it on, select the Rule Set option.

Then, a set of auto-blocking and auto-bidding rules will be created automatically and will start optimizing your campaign immediately. Please note that if selected all previous existing rules will be deleted for this campaign.