Return on Investment Optimization is a form of auto-run programmed advertising that allows companies to optimize the performance of their advertisements by incorporating aspects of real-time technology. While the actual optimization approaches may vary, they mostly involve the use of multivariate testing. Multivariate testing analyzes fields such as creative development, regulation of identified test variables, defined optimization objective, and method of optimization that will maximize the return of investment made in promotional activities.
Test variables commonly include graphical elements such as: ad copy, colors, and click-through actions. The optimization objective can be initial engagement, a user action (such as click or install), or a post-install metric (such as purchase, registration, or lifetime value). Optimization is carried out using some form of discrete or combinatorial optimization techniques. Creative development is done using creative studio tools like Adobe Photoshop and Adobe Illustrator. This may include video, animation, native components, and interactive elements.
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