How to Plan the Campaign-budget?
Daily Budget - the maximum amount that Joom may withdraw from your account for a day of advertisement. We suggest using the daily budget as a tool to align planned sales with product stocks.
How Should You Plan the Budget?
When planning your budget, please consider the following:
- The amount of orders you can fulfill according to the Joom’s policies;
- The product’s availability in stock;
- The money paid for the advertisement is not refundable even the order from Ads is canceled.
CPA Bid Method Example
If you chose CPA bid method while creating your Joom Ads campaign, the bid you set is called ACOS bid and it is measured in percents (%).
If you don't know what a bid is, please read the article Setting Bids for Products Promoted via Joom Ads.
For example, you created CPA Joom Ads campaign lasting for one day with the following details:
Products within a campaign |
Original Price | ACOS Bid | Daily Budget |
1 |
$10.00 | 12% | $150.00 |
For each purchase made within the Joom Ads campaign, you won’t pay more than:
Number of sales x ACOS Bid x Original Price $1.2 = $10 x 12% |
The actual final amount that you pay will depend on the auction’s results and may be less than $1.2, but it will never exceed that amount.
⚠️ PLEASE NOTE: The more products are in the campaign, the more budget is worth setting.
Example of how NOT to do:
Products within a campaign |
Original Price | ACOS Bid | Daily Budget |
10 |
$10.00 | 10% | $3.00 |
For each purchase, you will pay $10 x 10% = $1. In this case, you have set a limit on 3 sales of 10, which will severely limit the traffic to all products.
CPM Bid Method Example
If you chose CPM bid method while creating your Joom Ads campaign, it is measured in dollars ($) per every 1 000 impressions your products get. The final amount you pay is calculated based on the actual number of impressions your products got.
If you don't know what a bid is, please read the article Setting Bids for Products Promoted via Joom Ads.
For example, you created CPM Joom Ads campaign lasting for one day with the following details:
Products within a campaign |
Original Price | CPM Bid | Daily Budget |
1 |
$10.00 | $0.5 | $15 |
Within one day the maximum number of impressions your product will get is:
30 000 = ($15÷$0.5) x 1000 |
⚠️ PLEASE NOTE: The final amount of impressions depends on your bid value and the budget. The maximum amount of impressions is given considering you win all of the auctions with your bid.
For each impression made within the Joom Ads campaign, you won’t pay more than:
(Number of impressions x CPM Bid) ÷ 1000 $0.0005 = (1 x $0.5) ÷ 1000 |
All the sales that happen within the Joom Ads campaign are not included in the charge amount. However you will be able to tell how much each sale costs you within a certain time frame. For example, if you get 100 sales within a day, one sale would cost you no more $15 ÷ 100 = $0.15 within one day of advertising. But consider that good product will continue to get sales even after the campaign investment cost decreases with time.
The actual final amount that you pay will depend on the auction’s circumstances and may be less than $0.0005, but it will never exceed that amount.
⚠️ PLEASE NOTE: You should carefully plan your daily budget for the CPM Bid Mode campaign, Joom Ads system will do its best to get you relevant impressions throughout the day but it doesn’t guarantee you get sales for those products.
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