New strategy: "Average return on investment"
Today a new strategy to automatically manage bids has appeared in the Direct interface, Direct Commander, and the Direct API. The system helps get the maximum amount of conversions by focusing not on individual cost indicators — like CPC or goals — but on the financial effectiveness of the ad in general, that is the return on your investment.
The return on investment is the relation between profit and expenditure on advertising. By calculating this value, you can assess how effectively your weekly budget in Direct is being spent.
|For example, let's say you sell covers for laptops, and your revenue from selling one unit is 1500 rubles. Every week on average 30 customers come to you via Direct advertising, and your weekly expenditure on advertising costs 15,000 rubles (or 500 per person on average). That means, the revenue from advertising (1000 rubles) is double the amount it costs you in expenditure (500 rubles).|
To maintain the return on investment at the level you want, you can enable the new strategy and set the ROI value in its settings at the the level you consider optimal for your business.
The system will manage bids by keywords in order to:
- get as many conversions as possible in a week
- bring the average weekly return on investment value closer to the value set by you
Further information about the strategy's settings and what to pay attention to when it's switched on can be read in the Help section.