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4Regression · Bid Optimization

Bid Optimization

What should we bid for this impression?

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A real-world example

What should we bid for this impression?

DSPs bid on billions of impressions daily using models that treat each auction independently. They miss cross-auction patterns: how competitive pressure shifts by time of day, which publisher-advertiser combinations yield outsized returns, and when budget pacing should accelerate or brake. A DSP managing $500M in annual spend that improves bid efficiency by 8% saves $40M in wasted impressions.

How KumoRFM solves this

Graph-powered intelligence for advertising

Kumo connects auctions, bids, impressions, conversions, and budgets into a temporal graph. The model learns bid-to-outcome relationships across the full auction ecosystem, capturing competitive dynamics and budget pacing constraints. PQL expresses the optimal bid as a regression target conditioned on conversion probability and remaining budget.

From data to predictions

See the full pipeline in action

Connect your tables, write a PQL query, and get predictions with built-in explainability — all in minutes, not months.

1

Your data

The relational tables Kumo learns from

AUCTIONS

auction_idpublisher_idfloor_pricetimestamp
AUC001PUB01$0.802025-03-01 08:00
AUC002PUB02$1.202025-03-01 08:05
AUC003PUB03$0.452025-03-01 08:10

BIDS

bid_idauction_idcampaign_idbid_amountwon
BID101AUC001CMP01$1.05True
BID102AUC002CMP02$1.50False
BID103AUC003CMP01$0.60True

IMPRESSIONS

impression_idbid_iduser_idad_id
IMP601BID101U001A100
IMP602BID103U003A102

CONVERSIONS

conversion_idimpression_idvaluetimestamp
CVR301IMP601$25.002025-03-01 09:30

BUDGETS

campaign_iddaily_budgetspent_todaypacing
CMP01$50,000$12,400Ahead
CMP02$30,000$8,200On-track
2

Write your PQL query

Describe what to predict in 2–3 lines — Kumo handles the rest

PQL
PREDICT AVG(CONVERSIONS.value, 0, 24, hours)
FOR EACH AUCTIONS.auction_id
3

Prediction output

Every entity gets a score, updated continuously

AUCTION_IDFLOOR_PRICEOPTIMAL_BIDEXP_CONVERSION_VALUE
AUC001$0.80$1.12$22.50
AUC002$1.20$0.00$3.10
AUC003$0.45$0.68$18.40
4

Understand why

Every prediction includes feature attributions — no black boxes

Auction AUC001 -- PUB01 at 08:00

Predicted: Optimal bid: $1.12 (expected conversion value: $22.50)

Top contributing features

Publisher historical conversion rate

4.2%

29% attribution

User segment match to campaign target

High

24% attribution

Time-of-day conversion pattern

Morning peak

19% attribution

Campaign budget pacing status

Ahead by 8%

16% attribution

Competitive bid density this hour

Medium

12% attribution

Feature attributions are computed automatically for every prediction. No separate tooling required. Learn more about Kumo explainability

Bottom line: A DSP managing $500M in annual ad spend saves $40M by optimizing bids with Kumo's graph-learned auction dynamics. Cross-auction signals like budget pacing, publisher quality, and competitive density produce bids that flat models systematically get wrong.

Topics covered

bid optimization AIreal-time bidding MLprogrammatic bid predictionauction optimizationDSP bid modelKumoRFM biddingad auction predictionoptimal bid price

One Platform. One Model. Predict Instantly.

KumoRFM

Relational Foundation Model

Turn structured relational data into predictions in seconds. KumoRFM delivers zero-shot predictions that rival months of traditional data science. No training, feature engineering, or infrastructure required. Just connect your data and start predicting.

For critical use cases, fine-tune KumoRFM on your data using the Kumo platform and Data Science Agent for 30%+ higher accuracy than traditional models.

Book a demo and get a free trial of the full platform: data science agent, fine-tune capabilities, and forward-deployed engineer support.