Small and medium-size businesses struggling to find their return on investments using Google AdWords now have access to artificial intelligence that analyzes campaigns to calculate losses and returns, recommending specific keywords based on a variety of metrics.
NetElixir's engineers developed an algorithm that analyzes keywords in campaigns based on budget and key performance indicators (KPIs) such as revenue on ad spend (ROI) and cost per order (CPO).
LXRGUIDE, a Web-based stand-alone platform, integrates directly with Google AdWords. It requires marketers to set a target amount for the ROI and makes recommendations on the keywords based on a calculated return and run rate, among other metrics.
"For every dollar invested, companies must get $3 in return," said Udayan Bose, CEO of NetElixir. "Managing it without tools it's difficult to achieve that level."
LXRGUIDE will become the first of many self-service platforms that NetElixir plans to build to support small to-medium-size businesses spending less than $50,000 monthly. The online suite of tools, from search and analytics to social, aim to aid companies generating about $20 million in annual revenue from ecommerce.Businesses that spend between $10,000 and $45,000 monthly on paid-search campaigns may seem less significant, yet they continue to contribute substantially to Google's quarterly revenue -- which in the quarter ending Dec. 31, 2015 drew about $21 billion in revenue. Paid-search advertising for the quarter rose 31% compared with the prior quarter.
Marketers at these companies typically are not experts, but they know enough to run the campaigns. Unlike other platforms, NetElixir offers a dashboard with detailed analysis and multiple tabs that provide marketers with reasons to use specific campaigns. The recommendations are based on performance of campaigns running in real-time.
Bose refers to the algorithm as "sequencing," which recommends the best action to take based on a variety of inputs -- about 60 total at any given time. They will continue to change as the ad performance changes.
Reports include everything from account-level performance and geographic and device distributors for mobile and tablets to hourly performance quality scores and impressions.