If you want to benefit from exposure but with a clear focus on sales, while maintaining control over costs and transparency, and you prefer minimal hassle with targeting and bidding, consider running a Smart Display campaign with a sales objective and a target CPA bidding strategy. Below are some tips and suggestions, whether you’re a beginner or have some experience with similar campaigns.
- Objective and Campaign Type
Choose the “Sales” objective for your Smart Display campaign. - Budget
Set your daily budget according to your performance goals and financial capabilities. Note: Google recommends that the daily budget be at least 10 times higher than the target CPA for optimal performance. - Bidding Strategy
a. If you focus on conversions:- CPA (Cost Per Action): This is the amount you are willing to pay for a conversion. In a Smart campaign, if you set a target CPA, the system aims to meet this average cost. Essentially, you specify the maximum amount you’re willing to pay for a conversion.
Cons:- Requires effort to create dedicated campaigns/ad groups, especially if you have multiple product categories with varying CPA needs. For example, if a product sells for 500 RON and you have a generous margin, a target CPA of 20 RON is reasonable. However, if a product sells for 45 RON, you may need to reconsider your bidding strategy.
- Transparency: If you work with an agency, they need to know what a comfortable CPA is to estimate profit margins and can weigh this in performance negotiations.
- Pros:
- Leverage AI for bidding.
- Transparency: Clear tracking of impressions, clicks, and conversions.
- CPA (Cost Per Action): This is the amount you are willing to pay for a conversion. In a Smart campaign, if you set a target CPA, the system aims to meet this average cost. Essentially, you specify the maximum amount you’re willing to pay for a conversion.
- b. If you focus on conversion value:
- ROAS (Return on Ad Spend): This percentage measures how much revenue you generate for each currency spent. For example, if you want to earn 1000 RON for every 20 RON spent, your ROAS is 5000%.
Formula: Conversion value ÷ Ad spend x 100% = Target ROAS
To use ROAS, you need at least 15 conversions in the last 30 days. Consider switching from target CPA to ROAS after some time.
- ROAS (Return on Ad Spend): This percentage measures how much revenue you generate for each currency spent. For example, if you want to earn 1000 RON for every 20 RON spent, your ROAS is 5000%.
- Conversions for Reporting
Only include conversions that constitute a transaction (a sale on your site). Avoid tracking other events as conversions in this campaign (e.g., call extensions if that’s your focus elsewhere). - Audience
Note that Smart Display campaigns do not support audience or user list targeting. - Remarketing
Smart Display campaigns include remarketing. If you include a feed, you can also enable Dynamic Remarketing. - Targeting
Although you can’t adjust audience targeting, you can manage placements, locations, and demographics.
a. Exclude placements with a “not yet rated” qualification. Many of these are new sites with no traffic or exposure.
b. Allow placements “below the fold.” Sometimes, significant user actions happen after scrolling down. - Responsive Display Ads
Even if you run a custom display campaign, include Responsive Display Ads. Google recommends this for better ad scoring and overall results. - Asset Performance and Optimization
a. Assets rank relative to others in the ad group. Removing low-performing assets might lead to high-performing assets becoming less effective if new additions perform exceptionally well.
b. Conversion optimization can take up to 2 weeks. Google generally recommends waiting for 40 conversions before making significant changes to assets, headlines, etc.