Boston-based Teikametrics announced the addition of an hourly bidding solution for Amazon advertisers using Teikametrics Flywheel campaign optimization platform Monday.
Why you should care
The company says the bidding algorithm is powered by machine learning and analyzes ad data, transaction data, and importantly, cost of goods sold data. The algorithm analyzes bids hourly to make adjustments when needed. “Amazon is continually providing more and more access to data and API opportunities, along with more ad units,” said Alasdair McLean-Foreman, CEO of Teikametrics, by phone Monday.
Teikametrics refers to Flywheel as a retail optimization platform (ROP). “We consider this a new category,” said McLean-Foreman. It’s a different use case, said McLean-Foreman, because the transactions from ad engagements happen right on Amazon, unlike ads on Google or Facebook. The platform using machine learning to optimize pricing, operation and inventory performance for Amazon advertisers.
“We can see the transactions and profitability. The brands don’t give Amazon cost of goods sold data, but they give it to us,” explained McLean-Foreman. With that combination of data — ad, transaction and cost of goods sold — the algorithm can optimize bids for profitability.
McLean-Foreman compared the hourly bidding algorithm to a digital thermostat that can regularly check and react to climate changes to maintain a steady room temperature. “The bids don’t change every hour by default,” he said. Instead, it checks the bid status more regularly to deliver more consistent optimization.
“The longer you have an under-optimized bid, the more it’s going to cost you,” said McLean Foreman. The scale of data — it claims $6 billion in retail sales has gone through the platform — and optimization frequency means its hourly algorithm can deliver millions in increased profitability for sellers, said McLean Foreman.
More on the news
- Hourly bidding is available to all sellers using Teikametrics Flywheel.
- The company says it is particularly ideal for high volume auctions in verticals such as consumer electronics, household items, and apparel that “will benefit the most during the first few days of bidding, during which time wasted ad spend can be curtailed by up to 50 percent.”
- Lower volume sectors can also gain more auction and keyword performance insights faster with the added granularity of the hourly capability.