Engine Optimized Segmentation (EOS) combines all category / user segments into one segment, which allows the engine to bid more efficiently.
By having one pool of users versus many, we’re allowing the engine to make more intelligent decisions on a user-by-user bidding strategy. This means it can be more dynamic, bidding less aggressively on users who appear to be less valuable, and more so on users who appear to be more valuable.
Combining segments to one Lower Funnel segment allows for a larger spectrum and a more efficient campaign. We’ve consistently seen either (a) COS improve with constant sales volume, (b) sales volume improve while COS remains constant, or (c) both.
Given this, the biggest lever we have to scale and/or pull back the campaign is our CPC bid. At a low bid our engine only goes after users with the highest intent signals. As you increase the bid you’re now targeting users further up the funnel and this is where you stand to gain a higher volume of incremental sales. These users may come back to the site more than once and therefore are more expensive to obtain, but targeting these users will help to grow your sales volume and top line revenue.