Overview
In advertising, achieving a specific ACOS (Advertising Cost of Sale) is crucial for maintaining profitability. Adbrew provides a metric called "target ACOS," which users can set at the campaign or account level and use within rulesets for bid, budget, or target management automation.
For example, with a rule criterion set as ACOS < target ACOS * 1, the rule will apply if the campaign's current ACOS is below the target ACOS specified for that campaign.
However, ACOS levels vary across campaigns, so it’s essential to calibrate each campaign’s target ACOS based on its unique performance. For instance, if one campaign has an ACOS of 15% and another has 40%, setting the same target ACOS for both wouldn’t be practical.
Similarly, if you launch a new campaign, you might set a higher initial ACOS threshold, as aiming for the same target ACOS as an established campaign might not be feasible in the beginning.
However, over time, as the new campaign’s ACOS improves, you’ll want to lower its target ACOS gradually, allowing Adbrew’s automation features—such as bid, budget, or target adjustments—to further optimize the ACOS.
Target ACOS automation in Adbrew automates the same things as it automatically adjust the target ACOS based on current ACOS of campaigns.
Setting Up Target ACOS Automation
Step 1: Access the Ruleset Page
Go to the Rulesets page from the Adbrew dashboard.
Click on Add New Ruleset in the top right corner.
Step 2: Choose a Ruleset Template
Decide whether to create a ruleset from scratch or choose from Adbrew’s Template Library.
For Target ACOS Automation template, select Campaign from the template options.
Step 3: Select a Target ACOS Template
Adbrew provides two primary templates for target ACOS automation:
Target ACOS Calibration Rule: One-Time
A single-use automation rule that adjusts your target ACOS based on the current ACOS. This template is ideal when first connecting your Adbrew account, allowing for an initial calibration.
Target ACOS Calibration Rule: Recurring
A recurring automation that dynamically adjusts target ACOS based on campaign performance. This rule periodically increases the target ACOS if the current ACOS is significantly higher than the target and decreases it if the ACOS is approaching the target.
Explaining Each Rule in the One-Time Template
Rule 1: ACOS < TA * 0.8 → Set Target ACOS to ACOS * 1.2
If the current ACOS is less than 0.8 times the target ACOS, this rule increases the target ACOS to 1.2 times the current ACOS, encouraging higher impressions and sales since the current ACOS is already well below the target.
Rule 2: ACOS > TA * 1.2 → Set Target ACOS to ACOS * 0.8
If the current ACOS (based on the last 30 days) exceeds 1.2 times the target, this rule reduces the target ACOS to 0.8 times the current ACOS, allowing the campaign to operate at a more realistic threshold.
Rule 3: 0.8 * TA < ACOS < 1.2 * TA → Set Target ACOS to ACOS * 0.9
If the campaign ACOS is between 0.8 and 1.2 times the target, this rule decreases the target ACOS by 10%, bringing it closer to the current ACOS level.
Explaining Each Rule in the Recurring Template
This automation typically runs on the 1st of each month, but you can customize it to run twice a month or weekly. Running more than once a week is generally not recommended.
Rule 1: Increase Target ACOS by 25% if Current ACOS > TA*2
If the current ACOS is double the target ACOS, this rule increases the target ACOS by 25%, making it achievable as a short-term target before gradually lowering it.
Rule 2: Decrease Target ACOS by 10% if Current ACOS < TA*1.1
If the current ACOS is within 1.1 times of the target, this rule reduces the target ACOS by 10%, to further optimize the ACOS of campaigns.
Note: You can set minimum and maximum ACOS guardrails in the advanced settings to ensure the automation doesn’t exceed these limits. These thresholds can be defined for each campaign on the Campaign Manager page.
Step 4: Linking Campaigns
After finalizing the ruleset, navigate to the Linked Campaign tab.
Select all relevant campaigns where you want these target ACOS adjustments to be applied.
Monitoring and Fine-Tuning
To keep track of the automation’s adjustments:
Visit the Change History page.
Select ACOS Adjustments to view recent changes made by the automation.
Target ACOS Automation FAQs
What's the difference between target ACOS and actual ACOS?
Target ACOS is your desired Advertising Cost of Sale that you set for your campaigns
Actual ACOS is the real cost of advertising relative to sales that your campaigns achieve
The automation uses the relationship between these two metrics to make adjustments
Can I use different target ACOS values for different campaigns?
Yes, you can set unique target ACOS values at the campaign level, allowing each campaign to have its own performance targets.
How often should I run Target ACOS automation?
For optimal results:
Run the one-time calibration when first setting up your account
Configure recurring rules to run once a month
Analyze at least 30 days of data for each evaluation
Why aren't my target ACOS values updating through automation?
Common reasons include:
Insufficient data within the evaluation period
No sales in the evaluation period.
Campaigns not properly linked to the ruleset
Campaign hitting the minimum and maximum ACOS threshold defined for the campaign.