Inside AdGooroo's Budget Analyzer v3.0
February, 2011
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In 2008, AdGooroo developed Budget Analyzer, the world's first commercial ad spend model for paid search. The algorithms behind this model were patented and later written about in the book, "The Ultimate Guide to Pay-Per-Click Advertising" (Entrpreneur Press, 2010). This model is currently in the third generation of development and is used within AdGooroo SEM Insight and Industry Insight.

This white paper discusses the theoretical workings of this model, results of benchmarking studies designed to test its accuracy, and practical considerations for use.

Included:
  • An overview of paid search modeling techniques
  • Theoretical accuracy measurements for the US market
  • Real-world accuracy measurements for the UK market
  • Practical considerations, such as country coefficients, subdomain aggregation, and using the model to compute CPC, CTR, and other advertiser estimates.
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