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).
Every product you select for a campaign should come with a bid.
How much should you bid for?
- 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 of the shipping method).
ACOS Bid and CPM Bid
When you create your Joom Ads Campaign, you have two options: the CPA bid method and the CPM bid method.
- The Bid you set within CPA Bid Mode is called ACOS Bid (Advertising Cost Of Sale) and is measured in percent (%). 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 EUR (€) 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.
Advice on Setting ACOS Bid
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 quickly as possible.
Gross Margin (%)
Optimal ACOS Bid Range
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 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.
What are Reference Bid & eBid?
These metrics are available only within CPA Bid Mode.
Reference Bid — the bid calculated by Joom, based on the analytics of your competitors’ bids. The bid is provided only for your information. If there are not enough bids for reference in your leaf category, Joom Ads counts bids from the category 1 level-up. Reference bid is updated daily.
If it’s greater than 100% it means that either the product is too cheap or the other merchants’ bids are higher (for the more expensive goods).
ADVICE: If you want your product to get more impressions, set the ACOS Bid higher than the Reference Bid.
eBid (Effective Bid) — the amount you actually bid when you set ACOS Bid value.
If you go to the Joom Ads page in your Joom account and scroll down to the Campaign List, you will see the CPM Metric as one of the ways to evaluate the performance of your campaigns. The metric is calculated for both CPA and CPM campaigns. Pay attention to this metric's value as it reflects the impressions' cost within different bid method campaigns.
Please refer to the article How to evaluate the Performance for more details.