AUTOMATIC BID ADJUSTMENTS FOR ELECTRONIC ADVERTISING

The accuracy of bid amounts for electronic advertising is improved by accounting for factors such as the cost-per-click (CPC) ratio for each ad. When a provider such as a search engine selects advertisements using automated auctions, it can be desirable for an advertiser to avoid underbidding for ads when the ads generate a significant amount of revenue or profit, or are otherwise performing well. Various algorithms can be used to generate a bid adjustment factor that allows bid values to be increased (or decreased) as appropriate, based on information such as CPC information. By calculating a separate adjustment factor, the amount of adjustment can be monitored and/or capped to avoid overspending. The algorithms also can utilize information at various levels of categorization, and at different time intervals, depending on the amount and type of information available, in order to provide an accurate and significant result.