Debunking 5 Myths about Yandex.Direct Automatic Bidding Strategies

The truth about Yandex.Direct automatic bidding strategies is that the robot always wins.  To a certain extent, advertisers can guess which ads may draw more clicks than others or how a user reaches a goal on their website but a good portion of these predictions are probably based on their use of analytics.  Rather, machine learning algorithms and the mathematical analysis of multiple factors produce a much more precise predictability of ad success.  All of the automatic strategies in Yandex.Direct are built on machine learning algorithms to provide advertisers with enhanced campaigns.

Enabling an automatic strategy can increase conversion rates on average by 57%. Campaigns using automatic strategies bring 11% more clicks than those with the same budget constraints using manual strategies. This blog provides Yandex.Direct advertisers with a bit more information on the way Yandex.Direct automatic bidding strategies work and some common myths associated with automatic bidding strategies.  Experts at Yandex, compiled this information in Russian but Russian Search Marketing is bringing you their assessment in English.

Yandex.Direct Automatic Bidding Strategies Facts

There are five major aspects of the Yandex.Direct automatic bidding strategies to understand as an advertiser.  All Yandex.Direct automatic strategies are built on a powerful, fully optimized instrument that allows the system to quickly reorient itself and adapt to any circumstances. The main advantage of automatic management approach lies in its effectiveness — the system will work to maintain or improve the current result, regardless of the performance of past strategies.

1.The system chooses the most effective keywords for ad impressions

2.The system regularly uses fresh data to recalculate forecasts taking multiple factors into account including the number of impressions, clicks, and converted sessions depending on the time of day, day of the week.

3.The system makes corrections to the campaign every fifteen minutes, which is much more frequent than third-party managements sytems or manual adjustments.

4.Automatic strategies include built-in protection against overspending. Under no circumstances will the system spend more than 1/3 of the weekly budget in one day or set a bid higher than 450 rubles or 1/10 of the weekly budget.

5.The system always aims to minimize the cost-per-click. Moreover, it will never buy a click if the price is significantly higher than the price of previous clicks.

Yandex.Direct Automatic Bidding Strategies Myths Debunked

It’s no surprise that there are plenty of myths surrounding automatic strategies, like any other technology. Few people actually know how the system really works. Here is a collection of some of the most popular myths, followed by explanations of the reality.

Myth 1:

It’s better to enable a strategy at the beginning of the week, or the system will spend the whole weekly budget in a few days.

Reality: There are no time limits for enabling strategies. The system can quickly reorient itself and perform budget recalculations any day of the week.

Let’s say an advertiser enables a strategy on Thursday. In this case, the system will consider that the budget was spent optimally during the previous part of the week — from Monday to Wednesday. On Thursday, the system will only spend the part of the budget proportionate to the number of days left in the week.

Myth 2:

Automatic strategies don’t work well if:

1.The campaign has less money than the set weekly budget

2.The account is replenished when the balance reaches zero

3.The strategy is interrupted in the middle of the week

Reality: These conditions do not affect the quality of the system’s operations, but rather lead to a re-calibration of the strategy. By default, the system considers that the budget was being spent ideally before the automatic strategy was enabled. Therefore it forgets any under- or overspending, and does not attempt to quickly spend the whole weekly budget, but instead spends the money in proportion to the days left.

Myth 3:

Too many (or too few) keywords will make a campaign ineffective.

Reality: The quality of the strategy’s performance depends on the correlation of low and high frequency queries, not on the number of keywords.

If the list mainly contains low frequency queries, the system will find it difficult to optimize the campaign due to the lack of activity. In this case, enabling an automatic strategy will not have such a noticeable effect, but will definitely be an improvement on the results of the manual strategy.

Myth 4:

You can’t add to the list of keywords once the strategy is active.

Reality: Expanding the list of keywords does not lower the strategy’s effectiveness.

On the contrary, adding medium and high frequency keywords that quickly accumulate statistics to your campaign can actually improve performance. Even adding low frequency queries to the campaign will not, as a rule, negatively affect the strategy’s effectiveness.

Myth 5:

It’s a bad idea to top up your account several times in one week if the value will only be enough for a few days. Better to top up once a week, and the value must be enough to last the whole week.

Reality: When and how often you top up your account does not affect the automatic strategy’s function. If the account doesn’t run out of money, the strategy will continue working as usual. Topping up your account when the balance is zero will cause the strategy to relaunch. While this will affect when goals are achieved, it will not influence the strategy’s effectiveness. It is more convenient to add enough funds to last the whole month or even several months in advance, since the system will never spend more than the allotted weekly budget.

Overall, Yandex.Direct automatic bidding strategies offer advertisers a useful and reliable way to run their ad campaigns. The algorithm produces cost-effective results and the strategies allow advertisers to make adjustments in their account without negatively impacting their success.  Yandex.Direct advertisers have the options of both manual and automatic bidding strategies, which both provide positive results depending on the goals and management of different campaigns.