Setting campaign goals for your Smart Campaigns informs the predictive AI bidding system about your advertising objectives. By defining a specific goal, Teikametrics automates the management of the Bid Modifier to ensure your ad performance aligns with your desired outcomes. This automation optimizes bid adjustments in real-time, enhancing the efficiency and effectiveness of your campaigns based on the goal you've set.

Setting 'Product Launch' as your goal informs the bidder you are starting to advertise new products and would like to be aggressive with your bidding to accumulate Impressions, Clicks, and Ad sales while staying within your ACOS Limit.

Setting 'Grow' as your goal informs the bidder you would like to stay aggressive post launching your advertising to increase ad sales but you are looking to stay below your ACOS Limit for more efficiency.

The 'Profit' goal requires you to have COGS set so the bidder can analyze the profit margins of the products you are advertising. By knowing the profit margins of your products the bidder will analyze your performance and market performance to maximize the profit dollar return on your ads.

Setting 'ROAS' as your goal informs the bidder you are looking to maximize the efficiency of your ads. The bidder will analyze your performance and market performance to bid toward the highest ROAS possible for your ads.

'Liquidate' is the most aggressive goal of the Smart Campaign Goals. This goal informs the bidder you would like to sell through your inventory as fast as possible without wasting ad spend. The bidder will increase bids to increase potential ad sales to liquidate your inventory.

Please note: The ACOS limit provided can exceed up to 50% to help achieve the liquidation goal, which is aimed to increase unit sales. Read More about ACOS Limit
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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.

Your ACOS Limit should be set at the pre-ad gross margin of the products within each ad group. This means:

By setting the ACOS Limit at the pre-ad gross margin, you provide the bidder with a clear guideline on the breakeven point. This helps optimize your ad spend and maximize profitability.

When managing your advertising campaigns on platforms like Amazon and Walmart, you may sometimes notice that your actual Advertising Cost of Sales (ACOS) exceeds the target ACOS limit you've set. This can be concerning, but it's important to understand the factors that can cause this to happen, even when your campaigns are performing well overall. Here are three key reasons:

In summary, while it might be alarming to see your ACOS exceed the set limit, these fluctuations are often a normal part of campaign optimization. Volatility in conversion rates, short measurement windows, and necessary bid exploration all contribute to temporary increases in ACOS. Over time, as data accumulates and the system optimizes, your ACOS should align more closely with your targets.

If you have any concerns or need further assistance in understanding these concepts, feel free to reach out to our support team.

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.

The ACOS Limit represents the maximum Advertising Cost of Sales (ACOS) an ad group can achieve before surpassing the break-even point for the products within that group. By setting this value, the bidder knows the exact ACOS threshold to avoid exceeding, ensuring the ad campaign does not operate at a loss.

The Bid Modifier further refines this process by indicating how close you want your bids to be to the ACOS limit. A bid modifier of 100% tells the bidder to aim for an ACOS that is precisely at the break-even point. A bid modifier below 100% suggests a desire to perform under the limit, thereby making a profit on your ads. Conversely, a bid modifier above 100% indicates a willingness to bid more aggressively, even at the risk of incurring a loss, to boost the visibility and promotion of your ad.

Here are some examples for ACOS Limit and Bid Modifier working together:

One of the key advantages of using Smart Campaigns is the automated management of your bid modifiers. Predictive AI continuously adjusts your bid modifiers to ensure optimal performance, based on your set goals. This eliminates the need for manual adjustments and trial-and-error to determine the best settings, as the AI handles it all for you, providing an efficient and hassle-free advertising experience.