Setting CPC Bid/ROI Target
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A bid is your input in the PLA placement and pricing auction. Your ad placement on the platform and the rate at which clicks on your ads are decided depends on your bid.
You can choose one of the following strategies for your ads in Bid Setting:
CPC Bid - You can enter the CPC Bid manually so that your ads are optimized to get more clicks
ROI Target - You can enter an expected ROI so that your ads are optimized to get the expected ROI
Learn more about setting CPC Bid/ROI Target here:
Each time an ad space is available, an auction is carried out that decides which product will be placed on the available ad space. CPC Bid helps you to set bids for your ads at the campaign level, category level, and SKU level.
CPC stands for Cost-per-click, that refers to the cost you have to pay for each click. It also means you pay only when someone clicks on your ad and visits the product detail page.
ROI stands for Return on Investment or Return on Ad Spends. It is simply the returns that you get (through sales, i.e. GMV in Rs) by investing in Paytm PLAs.
For example, if you invest Rs 100 in PLA and get GMV (Gross Merchandise Value) of Rs 500, then your ROI would be 500/100 = 5x, i.e. 5 times.
You can set your Target ROI in Bid Settings, i.e. the ROI you want to get through Paytm PLAs. Setting Target ROI as the optimization setting in Bid Setting will optimize your ads to help you achieve the desired ROI.
In a CPC bid, you decide your bid based on the maximum amount you want to pay per click. You enter this amount in INR and that is considered as your bid input in the real time PLA auctions.
Target ROI allows you to set your desired ROI (the ROI you aim for) from the ad campaign. Based on your set Target ROI and the daily spend limit (daily budget), bids are automatically calculated and executed for you so that your ads can be delivered to meet the Target ROI.
NOTE: Entering a certain ROI doesn’t guarantee that you will necessarily achieve that number every time. It simply means that the smart advertising system will optimize your bidding and ad delivery in line with the set Target ROI.
Target ROI and CPC Bid can be set at three levels:
SKU level
Category level
Store level
NOTE: SKU level Target ROI or Manual CPC takes the highest priority over Category level and Store level settings.
The following is the priority given to the three levels.
SKU level - highest priority
Category level - higher priority than Store level setting but lower than SKU level setting
Store level - lowest priority
If category-level and SKU-level bids are not available, then the campaign-level bid will be implemented.
You can always go through the analytics provided to you to see how your products are performing and can make the changes accordingly. You will also be given recommendations on the Dashboard to get good returns. You can improve your campaign by incorporating these recommendations.
Also, please keep in mind that the system learns with time. It optimizes your campaigns and improves results over a period of time. You might not achieve your desired ROI within the first few weeks and might have to be patient. With consistent investment and right inputs, your ROI will improve week on week.
NOTE: A change in factors like top products going out of stock, exclusion of top products from advertising enabled catalog, changes in discount, competition changes, etc. can lead to actual ROI not matching the Target ROI.
We have come up with our recommendations after analyzing hundreds of ad campaigns and observing Seller's activities on the Dashboard.
Here are the best practices to get optimum ROI:
Make sure you have titled the products correctly.
Make sure the product categories are correctly marked.
The best ads have good-looking, clear product images. Make sure the images are of high-quality taken in good lighting.
Make sure that your product catalog has products from different categories. Try to select as many products as possible in your product catalog.
Make sure that the prices of your products are attractive to shoppers.
Plan attractive discounts to boost sales.
Prepare for a Seasonal Sale period in advance by changing the CPC Bid manually. CPC Bid changes take 4 hours to get reflected in the running campaigns.
Seasonal Sale witnesses massive numbers of buyers looking for products on Paytm Mall.
As a Seller, you can make the most out of such discount periods by setting the right discounts and manually adjusting the Daily Budgets and CPC Bids.
Here are a few recommendations to prepare for a Sale period:
Smart algorithms make sure you get the best possible ROI for Paytm PLA.
Set the right discounts on the products. Make sure the discounts are more attractive than those on competitor products.
Spend more on advertising during the Sale Period. This results in high sales during the discount period. Set high CPC Bids for your products so that your ads are successfully placed.
This happens through multiple smart processes always working in the background. AI becomes smarter with more campaign data and results improve over time to give you the best possible ROI. The various smart processes include:
Auto-budgeting
Auto-bidding
Auto-budget allocation
Auto-generated Creatives (Optimized for maximum engagement)
Auto-product exclusion
... among many more processes that keep running to give you the best possible ROI.
You will certainly get better ROI than the previous ad cycle if you put all the settings to the AI mode (recommended).Typically, you can expect a 2X ROI. Best results are achieved when all settings are set to the AI mode.