1. What is changing with Smart Campaigns?
We're introducing significant enhancements, including goal-based automation and advanced AI bidding. A key change is the replacement of ACoS Target with ACoS Limit, allowing for more precise control over campaign profitability. We're also introducing bid modifiers and encouraging users to enter Cost of Goods Sold (COGS) to better inform bid strategies and true profitability.
2. What is ACoS Limit, and how does it differ from ACoS Target?
ACoS Limit is the maximum advertising cost of sales (ACoS) you're willing to accept before a campaign becomes unprofitable. It's different from ACoS Target, which is being phased out. The ACoS Limit is used to guide our AI bidder in making bid adjustments to optimize campaign profitability.
3. Why is COGS important for Smart Campaigns?
COGS (Cost of Goods Sold) is crucial for calculating your pre-ad gross margin, which in turn informs the ACoS Limit. By providing accurate COGS data, the AI bidder can optimize campaigns for maximum profitability, ensuring your ad spend delivers the best return.
4. What are the new campaign goals, and how do they affect Smart Campaigns?
The new goal-based automation allows you to choose one of several advertising goals, such as Product Launch, Grow, Profit, ROAS, or Liquidate. Each goal has a specific strategy, guiding the AI bidder in making bid adjustments. For example, if you select "Profit," the AI will work to maximize your profit dollars. If you don't provide COGS, the default goal will be "ROAS," which aims to maximize ad sales while staying within the ACoS Limit.
5. What if I don't currently use Smart Campaigns?
If you're not using Smart Campaigns, you might miss out on these benefits. To prepare for the new enhancements, review your ACoS Target, enter your COGS data, and consider converting existing campaigns to Smart Campaigns. This will enable you to take advantage of goal-based automation and advanced AI features, leading to improved advertising results.
6. How do I transition to Smart Campaigns?
To transition, make sure you've entered your COGS data, review your ACOS targets, and consider converting existing External Campaigns into Smart Campaigns once the new features are released. You can do this from the recommendation hub by following the recommendation for “Products Not in Smart Campaigns.” If you need assistance, reach out to our support team.
7. What happens if I don't enter my COGS data?
If you don't provide COGS, your campaign goal will default to "ROAS," and the ACOS Limit will be based on your existing ACOS target. The AI bidder will aim to maximize ad sales within this limit, but you won't have the benefits of profit-aware optimization.
8. When are these changes happening, and how can I prepare?
The new enhancements to Smart Campaigns will roll out in late July, 2024. To prepare, enter your COGS data, review your ACOS targets, and understand the new campaign goals. Once the new features are released, you can transition to Smart Campaigns to take full advantage of these updates.
9. Can I control spend with min and max bids for Smart Campaigns?
Smart Campaigns are fully automated by AI, with default min and max bids set for each ad group upon launch. The min and max bids will not be changed unless the optimal bid is outside the bounds and AI needs to adjust to bid for optimal performance. Controlling spend should be done with campaign budgets, allowing AI to optimize bids based on market trends and advertising performance.
10. Can I disable AI for Smart Campaigns?
Smart Campaigns are well structured campaigns with AI enabled. For that reason the campaigns and ad groups are required to have AI enabled. If you would like to run ads without AI enabled we suggest creating external campaigns and pausing Smart Campaigns. We do not suggest this because static bids will not out perform predictive AI bidding.
11. What is a 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.