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AI Bid Optimization in SplitMetrics Acquire

Learn about our new AI-powered advanced algorithm to maximize campaign performance and target actions with a cost cap and precision

Written by Tony Bondar

In the dynamic landscape of mobile app marketing, staying ahead requires cutting-edge technologies. Our new AI technology elevates ad campaign success by bringing precision and efficiency to performance optimization and adopting a holistic approach to keyword bidding.

AI Bid Optimization is a robust algorithm designed to boost conversions while adhering to your target. Leveraging innovative AI solutions from SplitMetrics, this goal-oriented strategy manages bids, aiming for maximized conversion volume and more rapid results. It takes a comprehensive methodology, automatically managing bids for the entire portfolio of your account’s keywords instead of doing so on an individual keyword level.

Benefits of AI Bid Optimization

🎯 Dual-Goal Optimization: Simultaneously focuses on achieving your key performance indicators (KPIs) and maximizing key in-app events.

🎯 Efficiency & Speed: Quickly reaches KPIs, saving valuable time and resources.

🎯 Effortless setup: Intelligently selects the optimal date range and step of adjustment, gradually introducing optimal bid adjustments within your specified limits.

🎯 Budget Management: Ensures optimal daily budget utilization by preventing under- or over-spending with intelligent adjustments. Eliminate budget constraints and maximize growth potential within your targets!

AI Bid Optimization vs. Condition-Based Bid Strategies

  • Condition-based strategies optimize bids at an individual keyword level, focusing on their performance independently. They provide precise control and transparency for targeted goals and are great at managing campaigns with clear KPIs, such as scaling conversions, reducing UA costs, or maintaining consistent CPA or ROAS, all with minimal time investment
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  • AI Bid Optimization goes further by analyzing large datasets, learning, and adapting dynamically to uncover insights beyond static settings. It takes a holistic approach, managing bids to achieve KPIs at the campaign level. This makes it perfect for large-scale campaigns with complex goals or when maximum efficiency and scalability are essential.

Such AI approach revolutionizes campaign management, enabling centralized bidding for campaigns with shared goals while delivering swift, cost-effective conversions seamlessly.

How AI Bid Optimization Works

Our AI algorithm operates in a continuous cycle of prediction and bid recalibration, applying changes once every 24 hours. In addition to performance signals, the algorithm reads each campaign's budget and current pace of spend as inputs, enabling it to factor in remaining budget headroom alongside conversion forecasts.

🤖 Prediction: The algorithm forecasts the expected spend and conversions for each keyword, leveraging historical performance data for accuracy. It evaluates the entire portfolio of keywords based on the performance history of all keywords in its training dataset and the portfolio's competitive landscape in the given storefront.

🧮 Recalibration: Using advanced mathematical techniques, the algorithm calculates the ideal bid distribution in real time and dynamically assigns bids across keywords daily to maximize conversions within the available budget. Bids are paced against remaining budget so the campaign lands on its planned spend — preventing budget from burning out early in the day or month, and directing each dollar toward the highest-value keywords.

This complex AI approach reduces spend wasters and optimizes search result budgets, saving thousands annually. Its continuous cycle ensures consistent, adaptive bid optimization while maintaining an average target CPA or ROAS across the portfolio — and now with predictable, on-target spend. This makes the algorithm a strong fit for large-scale and budget-constrained campaigns where hitting a planned spend target is as important as hitting a performance target.

❗ Note: Keywords cannot be excluded from automatic bid recalibration. The AI algorithms rely on full data access for comprehensive analysis and prediction accuracy.
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Setting Up AI Bid Optimization

Go to Optimization Hub > Bid Optimization Strategies. Click Create Strategy, select your app, and enter a name for your new strategy.
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Setting up AI-powered bid optimization requires careful consideration of campaign selection and your target KPIs.

Campaign Selection

You can now combine multiple campaigns into one AI-driven strategy, optimizing them towards a single goal for better performance and efficiency.

❗Note: Only include campaigns with the same business objective and KPIs to ensure effective optimization.
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Why is this a game-changer for you?

✅ Maximize AI Coverage – Get more of your ad spend optimized with AI, even for smaller campaigns.
✅ Simplify Campaign Management – Control and optimize campaigns all in one place.
✅ Better Performance – Avoid local optimizations and let AI find the best bid strategy across multiple campaigns.

When AI Multi-Campaign Approach Works Best

🚀 Lack of Time and Control (Multiple Geos) – Grouping similar campaigns allows for better focus, even when campaigns in different geos lack sufficient control.

🚀 Break Down Siloed Campaigns – Combine campaigns with similar KPIs that currently operate independently, ensuring cohesive optimization for the entire portfolio.

🚀 Resource Optimization – Consolidating campaigns with similar goals improves scalability, reducing the need for managing multiple individual campaigns.

Campaign Eligibility Criteria for AI Strategy 🛠️

To ensure the best results, campaigns must meet the following criteria:

  • Only campaigns with Delivery Status = Running can be included.

➡️ For CPA optimization:

  • Campaigns must generate at least 10 daily events on average (within a single in-app event category) over 30 days.

  • The average delay between a tap and your target action must not be greater than 30 days for optimal AI performance. Focus on target actions with shorter delays (e.g., subscriptions instead of long-term purchases).

  • The share of spend with a delay of over 30 days must be ≤ 90%.

➡️ For ROAS optimization: revenue of at least $500 per month; 90% of revenue should be generated within 62 days after ad tap.

Additionally, to secure optimal strategy performance with automated bidding:

✅ Minimize daily budget changes to maintain consistent impressions.
✅ Be mindful of any active automated rules that change bids in the campaign under the strategy. When there’s an overlap, these rules will skip keywords managed by the strategy, allowing the strategy to take full control of bid adjustments.

Strategy Goal Configuration

Select an existing Campaign optimization goal or create a new one directly in the strategy by specifying the target metric and value. For best results, refer to our recommended target values.

💡 Note: Our smart legibility assessment algorithm evaluates historical campaign data to recommend an optimal target value, taking into account conversion delays (e.g., when a user taps on an ad but completes the target action, like a purchase, several days later). By excluding data from the last few days, the algorithm ensures metrics like CPA and ROAS accurately reflect campaign performance, allowing the AI strategy to optimize smartly and efficiently.

We will also notify you if the value is too high or too low, or if another strategy (e.g., Condition-Based) may better suit your goals.

🚨 Important: If you update the goal in the strategy, the changes are automatically synced with Goals in Optimization Hub and applied to all campaigns assigned to that Goal. Connected automation tools will use the updated target.

Available Target Metrics 👇

  • Target CPA: Optimize conversions while keeping the cost per action within your target.

  • Target ROAS: Optimize conversions to achieve your target return on ad spend by balancing costs and revenue.

  • Target CPI: Increase app installs while staying within your target cost per install. The strategy adjusts bids to acquire installs efficiently.

  • Custom Metrics: Optimize bids using a custom metric you’ve configured as the target for your strategy.

For more details on supported custom metrics, see our 🔗Using Custom Metrics in AI Optimization Strategies article.

Strategy Intent Setup

Each strategy intent is designed to achieve specific outcomes, such as increasing visibility, driving conversions, improving cost efficiency, or maximizing ROI. Choose the intent that best aligns with your campaign objectives. What do you want to achieve?

I Focus on Visibility

If your primary objective is to maximize visibility and reach, opt for Scale up conversions/ ROAS/ Installs to increase impressions and engagement - ideal for brand awareness campaigns where exposure is key.

I Focus on Conversion Volume

For campaigns focused on increasing conversions, choose Scale Up or Maintain Average. These options help drive conversion volume while keeping costs aligned with your target.

I Focus on Performance Results

If your primary focus is cost efficiency or maximizing ROI, choose Decrease CPI/CPA. This option aims to bring your CPI or CPA below historical averages while increasing conversion volume. If you want to maintain consistent performance at your target CPA, choose Maintain Conversions at Target CPA to sustain conversion volume while keeping costs within your target.

I Focus on Maximizing Revenue (ROAS target)

For campaigns focused on maximizing revenue while staying within your target ROAS, select Maintain Average ROAS. This option helps maintain a stable average ROAS across all keywords by adjusting bids based on performance and optimizing spend to meet or exceed your revenue goals.

I Focus on Growth

If your primary objective is to get the highest possible number of conversions from your available daily budget, choose Maximize Volume. Unlike other CPA/CPI options, Maximize Volume does not optimize toward a target CPA/CPI. Instead, the strategy automatically adjusts CPT bids daily to maximize the conversion volume your budget can generate. This option is ideal for advertisers who want to prioritize scale and growth over CPA/CPI efficiency. No manual bid management is required, as bids are recalculated and updated automatically every day.

By aligning your bid strategy with your campaign’s specific objectives, you can take a more targeted and effective approach to achieving your desired outcomes.

💡 Note: You can opt out of AI Bid Optimization and switch to a Condition-Based strategy by clicking the gear icon and turning off the toggle.

Bidding Guardrails

Define your lower and upper bid limits to guide the strategy’s bid adjustments. AI will choose an optimal date range based on data sufficiency and introduce bid adjustments gradually within the limits to prevent spikes in performance and overspending.

Bid Limit Alerts

Bid Limit Alerts introduce an additional intelligence layer on top of AI Bid Strategies. They help identify when bid limits are restricting performance and provide clear guidance on what to adjust.

Instead of relying on manual audits, alerts are generated automatically based on daily performance data and highlight when bid constraints are impacting optimization.

Clicking on the alert will direct you to the location where adjustments need to be made.

Alert types

✅ Keyword level
A high-performing keyword has growth potential, but the upper bid limit is preventing the AI from increasing bids.
→ Action: Increase the upper bid limit for the keyword.

✅ Strategy level – Upper limit
Most performing keywords are hitting the upper bid ceiling, and CPA is above target.
→ Indicates that market conditions have changed and limits are too restrictive.
→ Action: Raise the upper bid limit.

✅ Strategy level – Lower limit
Most performing keywords are constrained by the lower bid limit, and CPA is above target.
→ The AI cannot reduce bids on underperforming traffic, leading to inefficiency.
→ Action: Lower the bid floor.

How it works

  • Alerts are generated automatically (no setup required)

  • Available for all AI Bid Strategies with configured bid limits

  • Clicking an alert opens the relevant bid limit field for quick adjustment

  • Surface across Strategy Dashboard, Analytics, and Campaign Optimizations

Why it matters

Bid Limit Alerts help prevent hidden performance loss caused by outdated bid constraints, ensuring AI Bid Strategies can fully adapt to current market conditions.

Budget Management

Budget Management helps you control campaign spend through two approaches: Budget Pacing for single-campaign strategies and Budget Allocation for multi-campaign strategies. Both use AI to manage budgets based on predicted performance and your optimization targets.

To enable, click the + Add Budget Management button and specify the settings.

Budget Pacing

Budget Pacing is available for CPA optimization in single-campaign strategies. It adjusts the daily budget of an individual campaign to help manage spend and achieve the target CPA.

You can configure the following settings:

  • Automatically adjust Daily Budget: Enable this option to apply budget changes automatically, or disable it to receive recommendations in the 🔗 Usage & Recommendation column.

  • Monthly Budget Cap (required): Set the maximum amount the campaign can spend during a calendar month.

  • Upper Daily Budget Limit (optional): Set the maximum daily budget the strategy can increase the campaign to.

The campaign’s current daily budget is displayed below these settings.

Budget Pacing can increase the daily budget when predicted performance indicates an opportunity to drive more conversions within your target CPA. It can also decrease the budget when spending is less likely to deliver the desired results. Budget decreases are available only during the first five days of the calendar month.

Budget Allocation

Budget Allocation is available for CPA, ROAS, and CPI optimization in multi-campaign strategies. It distributes a shared daily budget across selected campaigns based on predicted performance, directing spend toward campaigns with stronger opportunities to achieve the strategy’s optimization target.

You can configure the following settings:

  • Automatically adjust Daily Budget: Enable this option to apply budget changes automatically, or disable it to receive recommendations in the 🔗 Usage & Recommendation column.

  • Shared Daily Budget (required): Set the total daily budget available across the selected campaigns. The strategy allocates this budget based on predicted performance and conversion opportunities. The shared budget cannot be lower than the sum of the campaigns’ current daily budget caps.

The current shared daily budget is displayed below these settings.

Budget Allocation can adjust how the shared budget is distributed across campaigns as predicted performance changes. You can update the shared daily budget at any time.

Adjusting Targets After Launch

You may need to adjust your target value as campaign goals evolve — raising it to increase spending or lowering it to improve efficiency. Approach these adjustments carefully:

✅ Make gradual adjustments, without major shifts. If the system suggests a value higher than your desired goal, avoid drastic cuts. While target adjustments won’t reset the AI strategy’s learning, significant changes can cause sharp fluctuations in spend or conversion volume.

✅ Monitor performance weekly or bi-weekly after adjustments. This incremental approach helps maintain conversion volume and ensures smooth performance.

💡 Tips for success:

  • Run Multiple Scenarios: Don’t settle for just one simulation. Test various CPT bids to find the sweet spot where you maximize conversions at the lowest cost.

  • Review Data Daily: The ad landscape changes rapidly. Use the ✨ AI Bid Simulator’s daily insights to adjust your strategy based on the latest data.

How to Analyze the Results?

After creating the strategy, we recommend waiting for a week before reviewing the first changes. It typically takes at least 2 weeks to observe the first results. This timeframe allows the AI models to calibrate and account for any weekly cycle fluctuations and trends. If data volume is low or the target value significantly deviates from historical performance, a longer evaluation period may be necessary.

When assessing the strategy’s performance, consider that historical performance should be evaluated with conversion delay time in mind, as this can impact the observed results. If the strategy’s behavior significantly deviates from expected outcomes (e.g., you set a lower target value, but the AI increases bids and costs), contact your Customer Success Manager for guidance, and corrective action should be taken.

Bid Strategy Analytics

To gain deeper insights into your bid strategy performance, use the Bid Strategy Analytics tool available in the Bid Strategy dashboard. This feature offers detailed, actionable data to evaluate the effectiveness of your AI-driven bid optimizations and make informed adjustments. 📖 Learn more here.

Ads Manager

To monitor the history of bid adjustments, check the Keywords dashboard in Ads Manager.

➡️ Check the Suggested Bid column for key insights via purple tooltips. These tooltips display bid adjustment states, actions taken by the strategy, and timestamps of the last change for full transparency.

➡️ Use the Bid Optimization Strategy column to identify the strategy responsible for specific bid adjustments.

➡️ Check the Usage & Recommendation column. This metric shows how efficiently the daily budget is being utilized. If Budget Pacing is enabled, it will show AI-driven daily budget recommendations. Adjustments to the budget can be made based on these recommendations to ensure optimal campaign performance. 📖 Learn more

➡️ Analyze individual keyword performance with the CPT Bid metric on detailed charts. Use annotations to keep track of automatic bid adjustments and changes in keyword performance over time.

Change History

The history of automatic bid adjustments is also available in Change History, enabling you to track and analyze changes.

That’s it! Revolutionize how you optimize keyword performance at a portfolio level with our cutting-edge AI algorithm. Seamlessly navigate towards your target goals, saving precious time for strategic focus on other priorities 🚀

📖 Click here to learn more about how Condition-Based bid optimization strategies work in SplitMetrics Acquire.

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