While Adext AI manages your ad groups, it is constantly deciding how much to explore demographics that aren't obviously winners, it does this because it's always seeking for the most optimal conversion rate. Adext AI is intelligent enough to know when and by how much it should be exploring so that it minimizes taking budgets from obvious winning demographics.

As you watch Adext AI performance every hour, you'll see the conversion rate increase and decrease, if it only followed the first winners it spotted (and never explored) then it would miss a more optimal audience later but because Adext AI does explore, sometimes that exploration will cause conversion rates to decrease temporarily (because some of your budget is used to explore and is taken from the current winners). So while that may sound curious at first, it's important to understand that Adext AI is focused on the Highest Sustained Conversion Rate (HSCR), meaning that it may sacrifice a slightly lower conversion rate today for an overall higher conversion rate for the week.

So while you may see your conversion rates increase and decrease on a daily basis, know that it is focused on the maximizing the overall conversion rate (the HSCR) for the period of the experiment you defined (ie. one month).

That said, conversion rates can only increase to 100% (meaning every person that sees your ad converts), which in practice never happens in the real world. Also, conversion rates do not constantly increase over time, there's many reasons for this:

  • ad becomes stale
  • the best audience becomes saturated (tired of seeing the same ad too many times)
  • economy changes (people buy less things in January vs. December), etc...

So while Adext AI only charges a fee for weekly increases in conversion rate, we don't expect to always collect a fee for any given ad.

Instead, we expect that as you use Adext AI to manage ads you'll recognize when conversion rates hit a ceiling and consider that it has found the best audience for that ad group. Then you'll use the feedback provided by Adext AI (the demographics with the highest overall budgets are collectively the best audience for that ad group) to further improve your next round of ads to either:

  • better target your intended audience
  • create new ads for demographics Adext AI discovered for you
  • make a new variation of your ads to further improve conversions or keep your advertising "fresh"

So in summary, you should use Adext AI to help you find the HSCR for each of your ad groups and use the feedback to improve your ad creative. That way you're working with Adext AI to iterate your ads for the HSCR. This is how you use next generation ad tech AI (for real) as part of your ad optimization workflow. So go ahead and make as many ads as you can dream of and Adext AI will make sure it's always finding the best audience for each of them.

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