Learning Phase 101: The Engine Behind Smart Ad Optimization

The Learning Phase is a critical initiation phase where Lazada’s AI-driven algorithm gathers insights from user interactions within the Lazada app. By analyzing metrics such as clicks, impressions, and conversions, the AI enhances its ability to precisely target and connect with the ideal audience, ensuring more effective engagement.

Once your Sponsored Max campaign is launched, Lazada’s advanced AI-powered algorithms automatically enter a learning phase. This phase typically requires about 7 days or more to gather data and optimize campaign performance.

Why is the Learning Phase Important?

  1. Improved Targeting: The learning phase enables the AI to understand user behavior and preferences, which helps tailor your promotional material to reach individuals more likely to engage.
  2. Cost Optimization: By optimizing the delivery of your marketing content, the learning phase reduces wastage on uninterested audiences, thus lowering overall costs and enhancing ROI/ROAS.
  3. Better Conversion Rates: With more targeted content, your campaign not only attracts more clicks but also achieves higher conversion rates, making it more relevant and appealing to the audience.

The duration of the learning period is affected by several factors:

  1. Number of Conversions
    Having conversion data from previous campaigns can give new campaigns a strong start. The system learns more quickly when it can utilize historical data
  2. Duration of Conversion Cycles
    The speed at which customers make purchases after clicking your ad affects learning time. If customers buy shortly after clicking, the system learns quickly. If it takes days or weeks for them to make a purchase, the learning will take longer
  3. Bidding Strategy
    The approach you choose for bidding can impact how efficiently the system can optimize.
  4. Daily Budget
    This is the maximum amount you’re willing to spend on your campaigns each day. Once this budget is reached, your promotional content stops being displayed. Frequent pauses in campaign delivery, caused by hitting the daily budget, can disrupt the algorithm’s learning process

To ensure successful Sponsored Max campaign optimization:

  1. Initially, you might observe performance fluctuations during the 7-day learning phase as the system optimizes for your target ROI/ROAS. It’s crucial to be patient and allow the algorithm time to optimize.
    • Learning Phase: 7 days
    • For optimal results, allow campaign to run for at least 14 days
  2. We recommend avoid making frequent edits during this learning phase, as these changes can reset the algorithm and prevent the campaign from ever exiting it
  3. Once performance stabilizes, we advise reviewing and updating your target ROI/ROAS monthly for optimal optimization practices.
  4. To maximize the algorithms learning phase, and allow it to correctly find the best customers, a ‘No Limit’ daily budget is best. This allows the algorithim to explore as needed

Recent stories