To launch a Joom Ads campaign, you should set its daily budget.

Daily budget is the maximum amount that Joom may withdraw from your account for a day of advertisement. You can use it as a tool to align planned sales with product stocks.

When planning your budget, please consider the following:

• Bid method – CPA or CPM.
• Number of orders you can fulfill according to the requirements.
• Product’s availability in stock.

Advertisement expenses are not refundable even if the order from the campaign is canceled.

CPA campaign budget

In CPA campaigns, you pay the specific percent for each purchase generated from the ads. The more products are in the campaign, the more budget is worth setting.

A CPA campaign purchase maximum cost based on the following formula:

For example, if you set 5% bid for $12 product, each purchase will cost you no more than $0.6. The actual final amount will depend on the auction’s results and may be less than $0.6, but it will never exceed that amount.

Good example

A merchant creates a campaign with the following details:

For each purchase made within the campaign, they'll pay no more than $10 x 12% = $1.2. Considering the daily budget of $150, each campaign day can bring them around 125 sales for 10 products.

Bad example

A merchant creates a campaign with the following details:

For each purchase made within the campaign, they'll pay no more than $10 x 10% = $1. Considering the daily budget of $3, each campaign day can bring them around 3 sales for 10 products. In this case, low budget severely limits sales and traffic to all products.

CPM campaign budget

In CPM campaigns, you pay the specific sum per every 1000 impressions your product gets. The final number of impressions depends on your bid value and the budget. 

For example, if you set $0.5 bid and $15 daily budget, every day your products can achieve up to 30 000 impressions. In this case, each impression will cost you no more than $0.0005. The final amount will depend on the actual number of impressions your products got, but it will never exceed the daily budget.

If you use Auto-bidding, daily budget will be almost always fully spent.

In CPM campaigns, you don't pay for sales happening within the campaign. Joom Ads system does its best to get you relevant impressions throughout the day, but it doesn’t guarantee you get sales for those products. Still, you can tell how much each sale costs you within a certain time frame.

For example, if you get 100 sales a day with a $15 daily budget, one sale would cost you no more than $15 ÷ 100 = $0.15 within the day. Since good products continue to get sales even after the campaign is over, the campaign investment cost decreases with time.

👉 For more details, please refer to our ▶️ live stream replay about Joom Ads.