Sometimes it can be hard to decide which goal to choose. To make your decision easier, we prepared a concise list of goal definitions and explanations.
Table of Contents
Cost per Day
Cost per Conversion
ROAS/ROI
Cost Revenue Ratio (CRR) or Advertising Cost of Sales (ACoS)
1. Cost per Day
Use: Have a certain daily budget and want to maximize conversions and conversion value.
Note: Depending on changes in your account or in the market, Adspert may be slightly over or under the set Cost per Day. If you need a fixed budget limit, set it in your native advertising platform as a daily budget (e.g. directly via Amazon Ads platform). When the budget is reached, the advertising platform will stop running the ads and prevent Adspert from spending more than the set Cost per Day.
2. Cost per Conversion
Use: Maximize conversions for given target costs
Note: First, check the historical Cost per Conversion for the last 30 days. Then set a new Cost per Conversion that is not lower than 20% of the historical value! Any change bigger than 20% at a time might harm your performance. Instead, adjust the Cost per Conversion goal gradually by less than 20% at a time. Once the new goal is reached, adjust it again.
Example: Historical Cost per Conversion of the last 30 days is €10. The objective is to decrease it. First, adjust Cost per Conversion to €8 (€10 * 0,8). When Adspert gets close to reaching the goal, adjust it again by 20% which amounts to €6,4 (€8 * 0,8).
3. ROI/ ROAS
Use: Achieve a certain return on investment (ROI), also known as target ROAS (Return on Ad Spend).
Note: First, check the historical ROI/ROAS for the last 30 days. Then set a new ROI/ROAS that is not lower than 20% of the historical value! Any change bigger than 20% at a time might harm your performance. Instead, adjust the ROI/ROAS goal gradually by less than 20% at a time. Once the new goal is reached, adjust it again.
Example: Historical ROI of the last 30 days is 2.0. The objective is to increase it. First, adjust ROI to 2.4 (2.0 * 1,2). When Adspert gets close to reaching the goal, adjust it again by 20% to 2.88 (2.4 * 1,2).
4. Cost Revenue Ratio (CRR) or Advertising Cost of Sales (ACoS)
Use: This goal is similar to ROI/ROAS goal. The only difference is that it is measured differently by dividing advertising cost by revenue.
Note:
First, check the historical CRR or ACoS for the last 30 days. Then set a new CRR or ACoS that is not lower than 20% of the historical value! Any change bigger than 20% at a time might harm your performance. Instead, adjust the CRR or ACoS goal gradually by less than 20% at a time. Once the new goal is reached, adjust it again.
Example: Historical CRR or ACoS of the last 30 days is 20%. The objective is to decrease it. First, set your target value to 16% (20% * 0,8). When Adspert gets close to reaching the goal, adjust it again by 20% to 12,80% (16% * 0,8).