Topic Modeling for Keyword Bidding Optimization

The idea behind topic model is to discover the relationships between words and phrases. Topic modelling helps us to organize, search, understand and summarize large collections of textual information.

Each keyword term can be considered a document. Topic modelling targets to find a group of topics from a collection of documents that best represents the information in the collection. It can be thought of a way of text mining to obtain keyword attributes.

There are many ways to obtain topic models. The most widely used method is Latent Dirchlet Allocation (LDA). In the LDA model, each document is viewed as a mixture of topics that are present in the corpus. The model proposes that each word in the document is attributable to one.

The paradiam of optimizing Paid Search marketing performance?

Due to this advantage of being very well tractable over the traditional marketing marketers may not have a very critical view when looking at the paid search performance. This will certainly be a problem when the performance is not satisfactory, but it is just as important when the performance looks good.

This is because paid search marketing performance can be very volatile. Let’s focus on Google Ads specifically. There are many different areas Google Ads can be optimized, e.g. keywords, bidding, ad copy, and landing page, .

The keyword is the window through which customers find our product and company. It is critical to have a good keyword portfolio that covers the products and services. The keyword bidding optimization can improve the efficiency and click volume significantly, sometimes over 30% or more. There are many other adjustment for device, audience, location, schedule, etc.

AB testing is the most important tool for improving on ad copy and landing page performance. One ad copy can be easily 30% better than the other ad copy. Or a single change on the landing page can improve the conversion rate by 50%.

Here is the simplified paradigm of optimizing paid search marketing campaign.

  1. Understand the need of paid search marketing optimization.

  2. Build a complete coverage keyword portfolio and organize them into a good campaign and adgroup structure

  3. AB test ad copies and landing pages

  4. Keyword bidding optimization through data science