Ad Genius thrives on smart automation—but to unlock its full potential, you must set the right Target ACoS (Advertising Cost of Sales). This guide explains what Target ACoS is, how it fuels intelligent suggestions, and how to set it effectively using Ad Genius.
✅ What Is Target ACoS?
ACoS measures how much you spend on advertising to generate $1 of sales. It’s calculated as:
ACoS = (Ad Spend ÷ Ad Revenue) × 100
Your Target ACoS you set within Ad Genius is a goal. You are telling Ad Genius "this is the Advertising Cost of Sale percentage that I am willing to spend". Doing this will help Ad Genius make the necessary calculations to give you the smartest suggestions possible - in order to move your campaign toward that goal.
When you first set the Target ACoS within your campaigns, you can approach it from a few different standpoints. Here are two examples:
Aggressive: If Brand Awareness and impressions are your goals, or if you simply want to more quickly gain information about how users are interacting with your ads, you can be more aggressive with your ACoS. With a higher ACoS goal, you can work to optimize your campaigns and keywords based on the data at a more rapid pace, but you may have more wasted ad spend. (Target ACoS 25% - 40+%)
Conservative: Alternatively, if Campaign Efficiency is more important to your goals, you can take a more conservative approach by starting at a lower ACoS. This way you can slowly work your bids up to where they will perform the best. It may take more time for your campaigns to gain traction, but you will be spending less to do so. (Target ACoS <5% - 15%)
The idea behind these strategies is that the higher the ACoS, the more quickly you gain data. Depending on what you and your company's goals are, you may want to spend more to start selling more products and thus gaining data more quickly. Or you may want to play it more safe if budget is a more significant concern.
To sum up, setting a precise Target ACoS helps you:
Protect profitability
Guide bidding decisions
Receive tailored suggestions from Ad Genius
⚙️ How to Set Your Target ACoS in Ad Genius
Here’s how to set or adjust your Target ACoS:
Navigate to your Ad Genius Campaign Manager page:
Click the pencil icon beside the Target ACoS value of the campaign you wish to edit.
Set your desired percentage, or use the up and down arrows instead. Click anywhere on the page to save changes.
And of course, you can set or edit the Target ACoS in bulk! Please find the instructions in this article!
🎯 Tips for Setting an Effective Target ACoS
Start Conservative: New products may need a higher ACoS for launch visibility.
Factor in Seasonality: Adjust ACoS for peak seasons (e.g., holidays).
Monitor & Update Regularly: Review your target monthly or quarterly.
🚀 Final Thoughts
Setting your Target ACoS is the foundation of successful advertising with Ad Genius. It not only protects your margins but fuels the platform’s intelligent suggestions—helping you achieve smarter, data-driven growth.
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