MGID Release Of CPA Bidding Algorithm To Follow CTR Tool

MGID recently released AI-powered CTR Guard, which is designed to combat advertising fatigue and enhance digital ad performance. The company also is working more deeply in the ad funnel to release a CPA bidding tool focused on optimization and budget goals in campaigns.

The company, which supports native and performance advertising, has been testing a beta version based on machine learning and expects to make the announcement in April.

The plan is to roll from creative support deeper into the funnel to support performance-based features, according to Alex Chaban, sales lead at MGID. 

This week, MGID released CTR Guard. The tool -- based on artificial intelligence -- can predict and prevent declines in click-through rates (CTR) to help advertisers get the post of their campaigns with minimal manual effort. The tool was designed for advertisers, but it provides a better experience for users, he said. 

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Some 41% of marketers cite ad fatigue as one of the largest areas of concern around consumers, especially for native advertising. As consumers are being served the same ads repeatedly, campaign effectiveness declines rapidly, with CTRs dropping by an average of 15% within a week of a campaign’s launch.

"Any ad can drop by at least 60%” after running for a week, Chaban said. The company declined to provide brand name of those using the product.

Traditional A/B testing methods offer a reactive approach to address ad fatigue, but they often come too late when performance has already suffered.

MGID's tool can predict CTR drops before they occur, and automatically suggests AI-generated creatives to keep engagement with consumers, and then creates alternatives for the ad. The marketer makes the decision on whether to use the ad or create one themselves. 

Early tests show a change of the ad, even a line in the native ad, can improve CTR performance between 30% and 35% based on the type of sector advertising such as automotive or financial markets, he said. 

Based on initial analysis, CTR Guard’s predictive model boasts 90% accuracy in identifying upcoming CTR declines before they significantly impact performance. By aligning AI-generated creatives with real-time audience engagement trends can improve.

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