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How to Choose a Goal For Bid Management Algorithm?

 

When setting the goals in adgroup or the keyword/placement bid manager there are several steps to take:

1. Set the type of goal you would like. There are three goal types to choose from:

Goal Type:

Goal:

CPA

What is the maximum you are willing to pay per acquisition conversion?

Multi CPA

What is the maximum you are willing to pay per multi acquisition conversion?

ROI

What is the maximum you are willing to pay per value of conversion?

 

To set the goal use the drop-down menu to near the 'goal type' button to select the appropriate goal for your campaign.    

 

  goal_type_001.png

 

Don't forget to save!

 

 

2. Set the goal to the left of the heat map

Write in the goal you choose for the bid manager: this goal should take in to account the historic campaign statistics.

The statistics for the last 30 days (noted in the heat-map as 30D) is a good start but if you have the data in AdWords go back further to see the conversions in the last 90 days. 

In the example below we chose a campaign that has a CPA Goal. over the last 30 days, on average, the keywords have been converting for ~5.3 Euros. 'Yesterday' the campaign has been converting for ~2.3 Euros. 

When writing in the goal in the bid management algorithm we take in to account the conversion rate over a few periods of time and the ideal goal we have in mind. We would like our keywords to convert at 2.5 Euros, about half of what the are currently converting for, however when setting the goal in adCore we need to consider how this change will affect the bids our keywords will receive. 

Setting the goal to 2.5 Euros will drastically lower the bids in our campaign, in order to reduce the CPA. the campaign will suffocate.

So we set our goal to 4.5 euros, and gradually reduce the cost per conversion. Once the bids are adjusted to reach a goal of 4.5 euros, we will continue to reduce the goal.

As a best practice, the adCore team does not recommend reducing the goal by more than 20% at one time. If the keywords are converting higher than 20%, reduce the goal by 20% and let the algorithm manage the bids for a few days. Once the goals is stable, go back and reduce the goal further. 

 adcore.png

  choose_goal.png  

 

 

 

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