Every product you select for a campaign should come with a bid. The bid you set is a maximum share of the product price that you're willing to pay for each advertised sale (ACOS bid) or the number of impressions (CPM bid).
How Much Should You Bid?
⚠️ PLEASE NOTE:
- You are never charged more than your actual bid;
- ACOS bid is calculated according to the product’s original price disregarding the shipping price (regardless the shipping method).
ACOS Bid and CPM Bid
When you create your Joom Ads Campaign, you have two options: CPA bid method and CPM bid method.
The Bid you set within CPA Bid Mode is called ACOS Bid (Advertising Cost Of Sale) and is measured in percents (%). ACOS bid represents the amount of money you are willing to pay when the product is sold.
The bid you set within the CPM Bid Mode is called CPM Bid (Cost per Mille) and is measured in in dollars ($) per every 1 000 impressions your products get. CPM Bid represents the amount of money you are willing to pay for each 1 000 impressions your products get.
Advice on Setting ACOS Bid
The best strategy is to bid within the product's gross margin. However, the bid can be higher than the product's gross margin in case you want new products to get maximum traffic as quickly as possible.
Gross Margin (%)
Optimal ACOS Bid Range
If you chose CPA bid method, you can also turn on Smart Discount mode. If you leave the Smart Discount toggle turned on, the Joom Ads mechanism will use some part of the potential campaign-payment as the discount given to the buyer. Your advertising costs will not change, since the sum of Smart Discount Amount and Joom Ads Amount will never exceed the ACOS Bid. A discount is given only when it would most likely result in conversion: the smart algorithm will offer the most appropriate discount for every given customer.
To find out how much money you provided in total as a Smart Discount, please refer to the Discount Sum column in the Joom Ads reports.
⚠️ PLEASE NOTE: Smart Discount is available only within CPA bid method.
Advice on Setting CPM Bid
While setting the CPM bid aim for the following formula:
CPM = (Spent ÷ Impressions) x 1000
Therefore, the bid value and your budget define the number of impressions your products get. You should carefully set the CPM Bid.
You will be charged according to the actual number of impressions your products get. You can check it in the CPM column in the Joom Ads reports.
If you chose CPM bid method, you can also turn on Auto-bidding mode. You can use the Auto Bidding feature and let the system decide the bid for you, in this way you will be able to promote the product more effectively. Joom Ads system will do its best to get you the relevant impressions throughout the day but it doesn’t guarantee you get sales for the products. Please note, daily budget will be almost always fully spent.
⚠️ PLEASE NOTE: Auto-bidding is available only within CPM bid method.
What are Reference Bid & eBid?
⚠️ PLEASE NOTE: These metrics are available only within CPA Bid Mode.
Reference Bid - the bid calculated by Joom, based on the analytics of your competitors’ bids. The bid is provided only for your information. If there’re not enough bids for reference in your leaf category, Joom Ads counts bids from the category 1 level-up. Reference bid is updated daily.
If it’s greater than 100% it means that either the product is too cheap or the other merchants’ bids are higher (for the more expensive goods).
ADVICE: If you want your product to get more impressions, set the ACOS Bid higher than the Reference Bid.
eBid (Effective Bid) - the amount you actually bid when you set ACOS Bid value.
If you go to the Joom Ads page in your Joom account and scroll down to the Campaign List, you will see the CPM Metric as one of the way to evaluate the performance of your campaigns. The metric is calculated for both CPA and CPM campaigns. Pay attention to this metric's value as it reflects the impressions' cost within different bid method campaigns.
Please refer to the article Performance Evaluation for more details.