Optimization Algorithm
An Optimization Algorithm is a mathematical model that analyzes campaign data to automatically improve performance over time. These algorithms process millions of variables—such as bid price, time of day, device type, and audience behavior—to identify patterns that predict which impressions are most likely to convert.
In programmatic advertising, optimization algorithms run continuously within DSPs and SSPs, adjusting bids and creative delivery based on live results. For instance, if an algorithm detects higher engagement on mobile during evening hours, it can instantly reallocate budget and increase bids for that segment.
By removing manual guesswork, optimization algorithms help advertisers achieve superior efficiency, lower acquisition costs, and maximize return on ad spend (ROAS). They are the analytical engine behind every high-performing digital campaign.
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