If you are unsure what goal to set, please read the brief explanation of each goal and when to use it.
Please consider that Adspert calculates all goals on a daily basis. The monthly goal for “costs/month” will be divided by 30 days. Adspert uses “month” not as calendar month. Starting from the day of goal setting, Adspert tries to reach the daily goals in the way that the goal per “month” is reached by spacing it out to 30 consecutive days. If Adspert bids too high or too low on one day, it doesn’t compensate it in the following days because too high adjustments may harm the performance and this could lead to escalating effects.
Goal setting in the Adspert account:
> Goals & Promotions
Thereby Adspert pursues the goal to generate the maximum profit as the following sum is maximized:
Autopilot = Sum of profits before ad spend – sum of ad spends
This may lead to the following positive effects:
a) The costs per conversion will be reduced by 20% and the number of conversions will be kept stable.
b) The number of conversions will be increased by 20% and the costs per conversion will be kept stable.
As a general rule it is a mixture of a) and b). More conversions are achieved and they are more cost-effectively.
If you connect an AdWords account without any settings, Adspert will start the optimization automatically with the Autopilot.
Is it possible that a budget is too low for the goal autopilot?
The Autopilot tries to achieve as much profit as possible for you in any case. If Adspert refers to your AdWords budget as “too low”, it means the following: The autopilot could gain more profit by a volume increase. However, due to the set AdWords budget it is not possible to increase the volume further.
Assumed a conversion is worth 10,- EUR to you and the autopilot could set bids in a way that either 10 conversions for 20,- EUR or 20 conversions for 60,- EUR are achieved.
This example illustrates that for the second case a higher CPO arises but the higher volume achieves more profit. Consequently, the autopilot would decide for the second scenario. However, if you have set an AdWords budget of 20,- EUR, this will be impossible and you will generate 80,- EUR instead of 140,- EUR profit.
If you convey conversion values to Adspert, it is needed to convey your profit before advertising spend. Learn more about conversion values and goals in Adspert.
Select this goal if you want to spend roughly a certain budget per 30 days.
The monthly goal will be divided by 30 days independently from the month to assure continuity. Starting from the day of goal setting, Adspert tries to reach the daily goals in the way that the goal per “month” is reached by spacing it out to 30 consecutive days. If Adspert bids too high or too low on one day, it doesn’t compensate it in the following days because too high adjustments may harm the performance and this could lead to escalating effects.
Depending on changes in the account or market, Adspert may be over or under your budget goal. If you need a fixed budget limit, please set it in AdWords.
You can set a costs per month goal independently if you convey conversion values to Adspert.
However, we always recommend to convey your profit before ad spend values. This way Adspert is able to distribute the budget optimally within the cost goal. Learn more about conversion values and goals in Adspert.
Why should the budget set in AdWords be higher than the goal set in Adspert?
If you set a cost per month goal, Adspert tries to spend on average a thirtieth of the budget daily. Since expenses vary (partly by chance, partly depending on a certain weekday), you will have higher and lower daily expenses from time to time. This is totally normal and fluctuations compensate one another so that your expenses meet your desired average.
In case your set daily budget in Adspert is equated to your desired average expenses, the situation will change. AdWords will decrease days with higher expenses to the desired budget. For days with lower expenses nothing will happen. Hence, the average expenses are lower and thereby the goal can’t be achieved.
To avoid this problem, AdWords budgets should exceed the goals set in Adspert. Mostly a 20% higher budget is sufficient. For accounts with strongly varying expenses, a higher budget is advisable.
You can determine how much a conversion may cost. Thereby, it's important not to differ strongly from the historical costs per conversion because this might lead to a negative change in your performance.
You can set a cost per conversion goal independently if you convey conversion values to Adspert.
If you convey conversion values, it is up to you if you convey your profit or revenue. Learn more about conversion values and goals in Adspert.
Choose this goal if you want to achieve a certain return on investment (ROI), also known as ROAS (Return on Ad Spend). Adspert calculates the ROI as follows: conveyed profit before ad spend divided by costs. For a successful ROI optimization your AdWords conversion tracking must register conversion values.
Proceed the following way:
1. Calculate your goal ROI:
ROI = Sum of profits before ad spend / Sum of ad spends
2. Enter your goal ROI in Adspert.
3. Typically your goal ROI is > 1 if you want to make profit.
= Sum of profits before ad spend / Sum of ad spends
= 10.000,- EUR / 5.000,- EUR
In this example you enter “2” as goal ROI in Adspert.
For the goal setting ROI it es needed to convey your profit before ad spend.
In case you would like to convey your revenue, make sure to enter a significantly higher goal ROI. Learn more about conversion values and goals in Adspert.
If you convey your revenues to Adspert, you can measure the effectiveness of your campaigns based on a cost revenue ratio (CRR). Therefor, your AdWords conversion tracking must register conversion values.
Proceed the following way:
1. Calculate your goal CRR:
CRR = Advertising costs / Shopping basket revenue
2. Enter your goal CRR in Adspert.
= Advertising costs /Shopping basket revenue
= 10.000,- EUR / 100.000,- EUR
= 0,1 (= 10%)
For this example you enter “10%” as goal CRR in Adspert.
For the goal setting CRR it es needed to convey your revenue (shopping basket revenue). Learn more about conversion values and goals in Adspert.
General hint - conversion delays
When checking your AdWords performance and having the feeling that Adspert didn't reach your goal, please consider the effect of conversion delays.
Visitors of a website need a certain time before they convert (e.g. signup, click, purchase). For instance, there are cost-intensive products users consider much longer because they read test reports or need to think about the purchase for some time. Therefor, the conversion happens at a later date and will then slip in the optimization results.
Adspert considers conversion delays during the optimization automatically.