Every product you select for promotion comes 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?
- 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).
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 quick as possible.
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.
|Gross Margin (%)||25%||15%||10%||5%|
|Optimal Bid Range||20-25%||12-15%||8-10%||4-5%|
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, Joom Ads system will do its best to get you the relevant impressions evenly throughout the day but it doesn’t guarantee you get sales for the products.
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.
Bid, Reference Bid & eBid
PLEASE NOTE: These metrics are available only within CPA Bid Mode.
Joom Ads + Platform Promotions
Your products can participate in both Joom Ads and Platform Promotions at the same time.
In this case:
|Joom Ads charge = Joom Ads Bid - Product Discount|
For example, you choose the following parameters:
|Bid (Joom Ads)||15%|
|Product Discount (Platform Promotions)||10%|
|Joom Ads Charge||5% = 15%-10%|
The charging model is applied to products participating in both Joom Ads and Platform Promotions.