• by Laurie Sullivan  @lauriesullivan, July 15, 2014

adMarketplace has built an algorithmic bidding tool into its search engine marketing platform that pulls in business rules, such as a CPA goals or other types of performance metrics, and adjusts the advertising bids based on the device.

The tool, BidSmart, integrates into the company's Advertiser 3D platform, which allows brands to bid on a variety of traffic sources.

"We help determine the brand's performance goal and the algorithmic bidder bids, so you achieve the performance goal across diverse traffic sources, keywords and device types," said Adam Epstein, president and COO at adMarketplace.

Programmatic display bids rely on cookie-driven, lookalike audiences, but programmatic buying in search relies on direct response metrics and keyword targeting. Some of the metrics focuses on sales order values to achieve return on ad spend goals. For search, the targeting relies on keywords, rather than cookies.

adMarketplace aggregates a variety of sites allowing marketers to bid and purchase paid search ads from one platform. It's not on traditional search engines like Google or Bing, but sites like blekko, Local.com and The Weather Company.

Marketers learn the keywords consumers use most often from user behavior on Web sites and in apps. They take the keywords and use them in ads, often porting the data back into Google AdWords or Microsoft Bing.

As more data becomes available to marketers, the amount of keywords can become overwhelming. One brand advertiser uses 11 million keywords, per Epstein. Reporting tools breakdown the numbers by operating system and device, allowing marketers to see what they paid for a click on each source of traffic.

In fact, BidSmart's technology was used in June 2014, to update the nearly 11 million keyword bids for one large brand advertiser. Priced approximately 65,000 ad placements across 60 publishers for each brand advertiser, and analyzed an average of 24 campaigns, 891 ad groups and 12,120 keywords per brand advertiser.

Through the system, an unnamed international hotel chain saw a 78.5% increase in conversion rates, a 26.2% decline in conversion costs and 38.6% increase in online bookings.

Search advertising revenue this year rose to nearly $23 billion in the U.S. and to approximately $50 billion worldwide, per eMarketer. Search advertising accounts for 43% of all Internet ad revenue, surpassing display by more than 20%.