Setting the right ad group default bid for your manual campaigns is crucial for success with SP Optimizer. We use this ad group default bid as the starting point for any new keywords that you add to your campaigns and then bid up and down from there for a variety of reasons.

Selecting a bid that is too low can cause you to underspend and not see performance even from keywords that have a history of converting well. Selecting a bid that is too high can result in overspending and prevent you from hitting your ACoS targets.

## Formula

The formula for calculating the ad group default bid is as follows:

#### ACoS Target

Review the ACoS Target you have selected for that campaign based on margin and objective.

#### Product Price

Determine the average selling price for the products in that particular ad group.

#### Conversion Rate

Click into the campaign to review what your conversion rate was over the past 30 days.

## Example

Let's work through a calculation together!

Lisa is setting up a new manual campaign. She sells headphones at \$30 a pair. These headphones are new and in the launch phase, so she has an ACoS Target of 60% for the campaign. She looks at the mirror automatic campaign and sees the 30-day conversion rate is 10%.

This is how Lisa would determine the Ad Group Default Bid for her manual campaign:

``Ad Group Default Bid = (.6) x (30) x (.1) = \$1.80``