March 18, 2019 - Ginny Marvin of Marketing Land writes: 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 [pictured], 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. More...