LookSmart, the search advertising network and management company, has launched Optimal Pricing. The company claimed that Optimal Pricing is a new initiative to deliver enhanced performance to search advertisers by segmenting and pricing traffic according to that traffic’s value. It allows advertisers to reach and attract audiences outside the major search engines.
The new offering reportedly aggregates keyword search traffic on the LookSmart Advertiser Network, and classifies performance data so that the full spectrum of that traffic is priced according to traffic type, quality and volume.
The company said that the model relies on information about advertiser campaign objectives and network structure to provide each advertiser a chance to bid on the valuable traffic at all price points. This approach, when compared to a blended pricing approach more common in the search advertising industry, is expected to allow advertisers to generate more paid clicks and conversions, and to realise conversions at a lower cost-per-conversion.
The company said that most advertisers with larger campaigns can adopt Optimal Pricing in their campaigns on the LookSmart Advertiser Network.
The Optimal Pricing initiative was introduced to a small group of search advertisers, in beta release during the second quarter, and based on success in these cases, is now being rolled out to a broader cross-section of advertisers in the third quarter, the company said.
The release of Optimal Pricing follows the full release during the second quarter of SmartRotation, a CPA-optimized ad rotation feature that serves the best-converting ad creative based on tracking pixel data.
Ted West, CEO and president of LookSmart, said: LookSmart is focused on delivering search advertisers the most effective advertiser networks and services for reaching customers outside of the big three search engines; building Optimal Pricing into the AdCenter platform is a major advancement to that end. Optimal Pricing is consistent with our longstanding track-record of innovation and improved search advertiser performance.
