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Patent-pending approach to portfolio bid optimization runs predictive models to maximize campaign results

London, (February 27, 2012)  Kenshoo (, a global leader in digital marketing software, today announced the release of version 3.0 of Kenshoo’s patent-pending Model-Based Bid Policies under the new name, Kenshoo Portfolio Optimizer[TM] (KPO).

“Many of the world’s most sophisticated advertisers have been running trials of KPO and seeing immediate results,” said Yoav Izhar-Prato, CEO at Kenshoo. “Our algorithm’s proprietary decision-making process has completely transformed the practice of bid management and lowered the barrier to entry for marketers. KPO makes budget planning more efficient and bottom-line results more attainable within enterprise, local, and mobile search advertising.”

KPO compiles historical data and builds hundreds of thousands of statistical models to forecast the impact of each bid change on a search marketer’s entire keyword portfolio. In turn, KPO adjusts bids to maximise profit, revenue, conversion, traffic or other goals set by the advertiser. In one example, this solution helped Buyagift achieve a 21 per cent increase in average return on investment (ROI) since implementing KPO.

“Kenshoo Portfolio Optimizer is the most sophisticated solution on the market,” said David Hutchinson, Paid Search Manager at Buyagift PLC, the UKs leading gift experience company. “Beyond the finely-tuned algorithms that helped us exceed our business goals, KPO delivers the automation, flexibility and transparency we need to manage our campaigns most effectively.”

Kenshoo continues to enhance its Model-Based Bid Policies since unleashing the next generation portfolio bid optimizer in 2009. Version 3.0 is powered by a self-learning algorithm that incorporates custom seasonality information to anticipate jumps in traffic and conversion rate around promotions or important holidays. The KPO patent-pending process builds models for keywords with little or no performance data and re-evaluates keyword clusters every day to maximize impact on the portfolio goal.

“Kenshoo Portfolio Optimizer offers a vastly superior alternative to rules-based bid management and the portfolio bid solutions offered by other SEM software providers,” said Moti Meir, sr. director, head of research and product at Kenshoo. “It’s impossible for keyword-level bid management to drive the same type of results in paid search that KPO achieves because it does not consider the impact of bid changes against the entire portfolio. Meanwhile, other portfolio solutions effectively kill the keyword long tail whereas KPO has a patent-pending method to uncover the potential of low-volume keywords.”

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About Kenshoo
Kenshoo is a digital marketing software company that engineers technology solutions for search marketing, social media and online advertising. Brands, agencies and marketing providers use Kenshoo Enterprise, Kenshoo Local and Kenshoo Social to direct more than £10 billion in annual customer sales revenue. The Kenshoo Universal Platform delivers automation, intelligence, integration and scale to make better marketing investments. Kenshoo powers 6 of the top 10 global hotel groups, 7 of the top 10 retailers, 7 of the top 10 telecoms and 9 of the top 10 ad agency networks. With campaigns running in more than 190 countries, Kenshoo customers include Accor, Burberry, GroupM, Havas, John Lewis, Omnicom and Tesco. Kenshoo has 14 international offices and is backed by Sequoia Capital and Arts Alliance. Please visit for more information.

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