Predictive clearing optimization enables you to win more impressions at a lower cost while improving campaign performance based on your selected campaign goal.

With Predictive clearing optimization, DSP’s AI algorithms analyze historical winning prices for similar inventory and find the optimal bid for each impression served in a first-price auction.

This feature is free of charge until May 15, 2024. From then on, your campaigns will be charged 20% of the cost reduction made by Predictive Clearing on all ad groups where it was enabled.

Predictive clearing takes the highest possible bid and attempts to predict the market value for a given impression. Predicted market value determination is based on multiple signals, including bid floor, publisher, country, device type, OS, browser, user’s historical data, estimated placement CTR, local time of day, and many other factors.

Using historical market data to bid with optimal values, Predictive clearing attempts to continue to win bids but at the lowest price needed to win.

This algorithm acts as a separate layer to our existing automated conversion bidding strategies and CTR prediction engines by not only looking at optimal bidding values based on your performance but also taking into account market values and what the competitors are bidding with.

Example: You make a bid of $2.00. Our predictive clearing fee algorithm analyzes historical data and predicts the impression could be won with a much lower price, thus lowering your bid to $1.50.

This means you still win the auction but save $0.50 on the impression, which is a 25% savings compared to your original bid of $2.00.

Predictive clearing optimization ensures you’re not overpaying for impressions, enabling you to maximize performance for your budget. Predictive clearing optimization also saves you time by automating the calculation of lower costs and decreases overall CPM, CPC, and CPA costs.

If you’re already using one of our automated bidding strategies, Predictive clearing provides an additional layer to our automated bidding strategies by taking into account market competition and enabling your campaigns to bid at true market value, maximizing your campaign budget and enhancing performance.

Predictive clearing optimization is a setting available for all Automated bidding strategies (Conversions, Clicks, Engagement and Impressions) on ad group level in the Bidding and Budgets section.

This setting is turned on by default, but you can disable it at any point directly in ad group settings or in the Agency or Account settings template if you’d like to manage this setting across all your campaigns through one endpoint.

Keep in mind changing this setting in the Settings Template will only apply to newly created accounts or campaigns.

You're able to see the exact cost reduction Predictive Clearing generated in a new cost reporting column, called Predictive clearing optimization Value-add.

For all ad groups not using Predictive clearing, you will be able to see how much you could potentially save if Predictive clearing was enabled. This calculation will be reported as a "Potential predictive clearing value-add."

Please note: Data in the new Predictive optimization reporting columns is available starting April 4, 2024.

How is Predictive Clearing different from our existing bidding strategies designed to maximize clicks/engagement/conversions?

Predictive Clearing is an additional layer of automation that we apply on top of our existing performance algorithms. Existing algorithms are designed to find the optimal price based on your campaign performance, while Predictive Clearing also takes into account market conditions (based on historical winning prices for that inventory) and reduces the price to the lowest possible value still needed to win, attempting to bid at the true market value for each impression.

What is the cost of using Predictive Clearing Optimization?

Predictive Clearing optimization works on a savings share basis - you will be charged 20% of the amount saved for each impression. Keep in mind you’re only charged for impressions where predictive clearing price saves you money by lowering original bids.

Will I see the cost reported in the dashboard?

Yes. The cost of predictive clearing optimization will be automatically baked into the data cost column. You’ll also be able to see the savings in a dedicated "Predictive Clearing Value-add" reporting column.