Factorization Machines

The data science team at AdRoll is constantly working to improve our programmatic bidding algorithm, BidIQ. One recent improvement to BidIQ has been the introduction of a novel modeling technique called Factorization Machines (FM). The FM model allows us to consider interactions between all predictive variables, rather than only certain manually selected interactions. Thanks to the FM model, we are able to use the exact same feature information to more accurately value every potential impression that comes our way. As a result, our advertisers are collecting almost 7% more clicks for only 2% more cost.