Notes for Smart Bidding Strategy Groups with Target CPA
Updated
Smart Bidding uses an AI-based algorithm that is trained on your data to predict the best bid value for your Ad Sets. This will simultaneously save your time and improve the performance of your ads.
Use Cases
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Target CPA Overview
Target CPA is the average amount you would like to pay for each conversion. Smart Bidding with Target CPA is a strategy that sets bids to help get as many conversions as possible at or below the target cost-per-action (CPA) you set.
Smart Bidding controls the CPA (Cost per Action) and Spend Pacing to optimize for the following scenarios:
When CPA is greater than Spend Cap | When CPA is less than Spend Cap |
Sprinklr will bring down the Bid. | Sprinklr will look to optimize the bid and bring it to an ideal Pacing. |
Target CPA and ROAS Bidding
Strategy Group Smart Bidding varies between two input values depending on the Optimization metric that you have selected.
On selecting a Revenue optimization metric such as Facebook Purchase Value, the value field will be converted to take the input for Target ROAS. Target ROAS lets you bid based on a target return on ad spend (ROAS). Strategy Group Smart Bidding will help you get more conversions or revenue at the target return on ad spend that you set.
Tip
You can identify a revenue metric from the metrics in Ads Manager or Ads Reporting that have a currency symbol. However, do not confuse CPA metrics with Revenue metrics as they have currency symbols too.
For all other metrics, the value field will take inputs for Target CPA. This amount will be used as a limiter in Smart Bidding based on CPA. The overall objective is to maximize the optimization metric while trying to stay within the CPA limit.
To Configure Strategy Group Smart Bidding with Target CPA
In the New Strategy Group pane to the right, provide the Basic Details for your Strategy Group. For more information, see Strategy Group — Field Description.
Under Optimization Details, check the box alongside Smart Bidding.
Select an Optimization Metric from the drop-down and provide the corresponding Target CPA/Target ROAS value.
Click the Smart Bidding option from the left pane to configure it manually. You can click Change from the configuration window to provide a different Target CPA/ROAS.
Once done, follow the outlined steps to complete the process. For more information, see Create a Strategy Group.