How to set Conversion Bid Strategy up for success

Once you’ve chosen the right Bid Strategy for your campaign, you need to make sure to set up your campaigns for success.

We’ve broken down key tips and tricks for your next CBS campaign: 

1. Implement correct conversion tracking

  • The CBS algorithm learns and optimizes from conversion data so make sure it works as intended.
    If conversion tracking isn’t set up properly, CBS will adjust and react accordingly – causing volume, CPA or ROAS fluctuations. Learn all about conversion tracking here.
  • In addition to a lower funnel conversion event (typically conversions with 0.5%-3% conversion rate), we recommend implementing a conversion event with an average conversion rate between 10% – 20%.
    Campaigns with more conversion volume will have more consistent data points for the algorithm to learn from, resulting in fewer performance fluctuations over time.

2. Set realistic goals

  • If running a campaign on Target CPA or Target ROAS mode, it’s important to set a realistic target to not limit the system in achieving your goal.
    For example, setting a goal that is too low, may result in the system missing out on quality traffic that could lead to a conversion, resulting in fewer total conversions.
  • How do I set a realistic CPA/ROAS target?
    • Analyze your results across different advertising channels to determine your optimal target. We recommend you to look at channels that are most similar to native and display (for example, search traffic tends to produce higher conversion rates and isn’t advised to use for benchmarks).
    • Calculate the maximum cost you’re able to afford per conversion or start by setting your CPA goal around 20% higher than your ideal target to leave the system enough leeway to learn and explore in the beginning phase. You can always lower the CPA/increase the ROAS goal later once you’re seeing good results.

3. Optimize campaign settings and targets

  • Remove any blocks set on the campaign level to avoid scale issues.
    CBS performs best when given the freedom to optimize. Blocks on a campaign only inhibit the algorithm’s ability to correctly optimize towards your goals.
  • Remove bids for campaigns on Target CPA or Target ROAS modes.
    Setting bid limitations for your Target CPA or Target ROAS is not recommended because it limits the algorithms’ ability to scale your campaigns. It can also prevent the bid strategy from modifying your bids to the level that best meets your CPA/ROAS goal.
  • Set a daily budget at least 3x higher than your desired CPA goal.
    It’s recommended to start with a smaller budget and gradually increase it over time if you’re happy with performance.
  • For Target ROAS campaigns, start off with a budget that can guarantee at least 8 conversions per week.
    Again, the more conversions, the faster the system will be able to reach your desired goal.

Want to know more about our suggested best practices? Visit our dedicated article here

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