Auction-time bidding in Search Ads 360 bid strategies

Set target ROIs for ad groups

You can set ad group CPA and ROAS targets for Google Ads ad groups within intraday and auction-time portfolios.

When you set an ad group target, you're letting Search Ads 360 know that a particular ad group within a portfolio is valued differently and bidding for those ad groups should be increased or decreased accordingly. The target acts as a signal to the portfolio to reweigh the value of the conversions of those individual ad groups. It does not optimize that ad group separately to that specific target.

Example: Ad group CPA target

Campaign X is in a bid strategy with a portfolio CPA target set to $50, but the advertiser has chosen to increase Ad Group A's target to $100.

Campaign Portfolio CPA target Ad group Ad group CPA target Conversions
X $50 A $100 50
B --- 200

 

This does not mean that Ad Group A is now optimizing independently from the portfolio to the $100 target. Instead, this is a signal within the portfolio that the conversions in Ad Group A are worth 2 times the rest of the conversions in the portfolio.

It's important to note that the overall average target of the portfolio will change based on the conversion-weighted influence of the ad group CPA target. In this example, the overall portfolio target would be ((50*100)+(200*50))/(50+200) = $60. This is equivalent to "Optimal Cost" / Total Conversions. You can see this value in the "Bid strategy average target CPA" column. However, you should expect the value to change frequently due to the conversion-weighting.

Example: Ad group ROAS target

Campaign X is in a bid strategy with a portfolio ROAS target set to 400%, but the advertiser has chosen to decrease Ad Group A's target to 200%.

Campaign Portfolio ROAS target Ad group Ad group ROAS target Conversions
X 400% A 200% 50
B --- 200

 

This does not mean that Ad Group A is now optimizing independently from the portfolio to the 200% target. Instead, this is a signal within the portfolio that the conversions in Ad Group A are worth 2 times the rest of the conversions in the portfolio. Halving the ROAS has the same effect as doubling the CPA in the CPA example above.

It's important to note that the overall average target of the portfolio will change based on the conversion-weighted influence of the ad group ROAS target. In this example, the overall portfolio target would be ((400*200)+(200*50))/(50+200) = 360%. This is equivalent to Total Revenue / "Optimal Cost". You can see this value in the "Bid strategy average target ROAS" column. However, you should expect the value to change frequently due to the conversion-weighting.

 

There are 2 places in Search Ads 360 where you can set the target ROI for an ad group:

  • Directly in an ad group
  • In an ad group within a bid strategy

Setting an ROI target directly in an ad group

  1. Navigate to an ad group.
    Steps for navigating to an ad group
    1. In the left navigation panel, click All accounts.
      What if the left navigation pane isn't visible?

    2. Click the navigation bar to display navigation options.

    3. In the "Agency" list, click the agency that contains the advertiser. You can search for an agency by name or scroll through the list.

    4. In the "Advertiser" list, click the advertiser that contains the engine account.

    5. In the "Account" list, click the engine account that contains the campaign.

    6. In the "Campaign" list, click the campaign that contains the ad group.

    7. In the "Ad group" list, click the ad group.

    8. Click Apply or press the Enter key.

    Search Ads 360 displays the ad group page.

  2. Hover over the Ad group target CPA column or the Ad group target ROAS column, click the pencil icon, enter a value, and then click Save.
    If the ad group is in an auction-time bidding strategy, the Engine bid strategy name column will indicate the target is in place.
     
    If the ad group is in an intraday bidding strategy, the "Engine bid strategy name column" will say "(inherited)".

Setting an ROI target in an ad group within a bid strategy

  1. Navigate to a bid strategy.
    Steps for navigating to a bid strategy
    1. Navigate to an advertiser.

    2. In the left navigation panel, click Bid strategies.

    3. Click a bid strategy name from the reporting table.

      Alternatively, you can do the following:

      1. Click the more icon Expander (or more) icon at the end of the navigation bar to display navigation options.

      2. In the Agency list, click on the agency that contains the bid strategy. You can search for an agency by name or scroll through the list.

      3. In the Advertiser list, click on the advertiser that contains the bid strategy.

      4. In the Bid strategy list, click on the bid strategy.

      5. Click Apply or press the Enter key.

    Search Ads 360 displays the bid strategy page.

  2. Click the Ad groups tab.
  3. Hover over the Ad group target CPA column or the Ad group target ROAS column, click the pencil icon , enter a value, and then click Save.
    If the ad group is in an auction-time bidding strategy, the Engine bid strategy name column will indicate the target is in place.
     
    If the ad group is in an intraday bidding strategy, the "Engine bid strategy name column" will say "(inherited)".

Bear in mind

Setting an ad group target CPA or ad group target ROAS might affect the overall performance of your Target CPA or Target ROAS bid strategy. While an ad group target CPA or ad group target ROAS gives you more control over the performance of one ad group, it might impact the ability of your bid strategy to meet its overall target CPA or target ROAS.

Ad group target CPAs and ad group target ROASs persist even when you change the strategy target CPA or target ROAS. Changing the target CPA or target ROAS of the whole bid strategy will not change any ad group target CPA or ad group target ROAS you may have already set within that strategy. To change an ad group’s target CPA or target ROAS back to the bid strategy default, you’ll have to remove it manually. If you have previously set any ad group ROI targets in Google Ads for auction-time bidding strategies, these have been synced with Search Ads 360.

Was this helpful?
How can we improve it?