This article walks through the settings that the Flywheel Bidder requires in order to calculate optimal bids and make changes automatically.
The settings for the bidder are configured at the Ad Group level and can be adjust in Ads Manager. When the Bidder is turned on for an ad group, Predictive AI is used to calculate the optimal bid for every keyword and/or target in that ad group. Then, every bid is changed to the new optimal value automatically, saving you time and driving growth.
The Bidder requires 3 inputs in order to calculate the optimal bid for every keyword and/or target in the ad group:
AI Bidding
ACoS Limit
Bid Modifier
You cannot turn on Automated Bidding without these 3 settings. Automated Bidding will be marked as Unset for ad groups until these Settings are Saved. Learn more about on the Flywheel Bidder: How to turn on the Flywheel Bidder
AI Bidding
First, the AI Bidding column indicates whether the Bidder is currently active for a specific ad group. To enable editing in this column, you need to set three required fields: ACOS Limit, Bid Modifier. Min and Max bid will be set by default Once these settings are provided, you can edit the Automated Bidding status for the ad group.
No AI: The Bidder has never been activated for this ad group. You need to enter an ACoS Target, Min Bid, and Max Bid to enable automated bidding.
AI Basic Bidding: The Bidder is running, and Predictive AI is optimizing bids for all keywords and targets in the ad group. This means bid adjustments are happening automatically.
ACOS Limit
The ACOS Limit serves as "The Anchor" for your advertising strategy, guiding the Bidder to maintain profitability. It should be set equal to the average pre-ad gross margin of the products in the given ad group. This helps the bidder understand the breakeven point for the products within your ad group. To set the most accurate ACOS Limit, input the Cost of Goods Sold (COGS) for the SKUs involved. This ensures the Bidder can effectively manage ad spend, optimizing your ads for maximum efficiency/profitability.
Bid Modifier
The Bid Modifier is a crucial tool in the bidding process that dictates the level of aggressiveness for placing bids. It functions in relation to the ACOS limit, indicating how close the bidder is willing to approach this limit to achieve performance objectives. For external campaigns, users need to manually adjust the Bid Modifier to control performance, ensuring it aligns with their strategic goals. In contrast, smart campaigns benefit from AI-driven adjustments to the Bid Modifier, which are automatically calibrated based on the campaign's specified goals. However, users retain the flexibility to temporarily override this automation if necessary, providing a balance between automated efficiency and manual control.