How to choose Target ACoS%
The ACoS Target allows you to adjust bids per click and thus position in search results (Ad rank), impressions, clicks, actual spend and campaign profitability. Choosing the ACoS Target means choosing the trade-off between these factors.
What happens if I increase the Target ACoS?
If you increase the target ACoS (e.g. from 30% to 40%) then we will increase the bids per click of all keywords around +33% proportionally to each conversion rate. This will make your product rank higher in search results, capture more clicks on your product page. The higher cost of clicks will lead to a higher ACoS and therefore lower campaign profitability. If, on the other hand, you want to increase profitability, reduce the Target ACoS.
Our recommendationWe recommend choosing the target ACoS such that your product is slightly profitable. For example if the breakeven ACoS is around 35-40% then choose a 25%-30% Target ACoS. Increase it only if you want to have more clicks (boost effect) but be aware that this may increase the ACoS.
We do our best to make the actual ACoS as close as possible to the target, but please tolerate a margin of error due to campaign with little historical sales (< 30 orders in a month), fluctuations in conversion rates and selling price, competitor outbidding and minimum CPC for top-of-search.
|ACoS(%)||Ad spend / Ad Sales|
|RoAS(%)||Ad Sales / Ad spend or 1/ACoS|
|Total ACoS(%)||Ad Spend / Total Sales|