The Nexoya platform provides you with Portfolio optimization proposals on the ads you have live (by ad, we mean the marketing asset which has a budget assigned to it and generates certain performance – this can be a campaign ad, ad-set, or simply an ad). These proposals contain advice on how the budget can be allocated most efficiently for the upcoming period. This article explains how portfolio optimization works, and which steps Nexoya takes to deliver the best budget allocation possible.
When you initially connect to Nexoya, the platform reads all historical data corresponding to your marketing data sources, including cost and performance metrics, and then starts analyzing them.
Once you see the data in the Nexoya platform, you can define your cross-channel portfolio. This means that you select the ads you would like to optimize, provide the budget you would like to spend on them, and define any additional optimization options you would like to be considered, such as risk-level.
Once the cross-channel porfolio is set up, an artificial intelligence model which predicts the future performance of all your ads is run. For instance, it will predict how many impressions or conversions you will get next week. Nexoya uses a sophisticated selection of different artificial intelligence models, which ensures that the best prediction model available for each metric is used.
As a next step, these predictions are used by the next AI algorithm to calculate the best possible allocation of your budget for all the ads that are part of your cross-channel portfolio. The results are presented to you within the optimize tab of Nexoya, showing you the budget proposals for the upcoming period, or being applied directly for you. (Available in early adopter programs).
Last but not least, after the analyzed period comes to an end, the Nexoya platform provides you an assessment of the ads optimization. You can see the results you achieved compared to a scenario of how you would have performed without optimization. This gives you a clear view of the added value the optimization brings you.
The process can be summarized in the following steps:
- Read data from all connected ad-platforms
- Normalize & standardize all data (for instance timezones, currencies, etc.)
- Predict the performance of the ads for an optimized period
- Calculate the optimal allocation of your budget
- Display the optimal budget allocation across your ads and apply the budget automatically / on-demand (only available in early adopter program)
- Assess the effectiveness of the portfolio optimization after the period ends
We will continuously extend these articles to help you understand more about how our portfolio optimization works and how to best leverage it.
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