The Target ACOS you set within an Ignite is a goal.  You are telling Ignite "this is the Advertising Cost of Sale percentage that I am willing to spend".  Doing this will help Ignite 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 important concern.

Please be aware that the above mentioned ACOS ranges are suggestions, and will vary on a case-by-case basis.

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