Target CPC Calculator

Description

Purpose

Calculates optimal bids from actual conversion performance to hit Target ACOS goals.

This Template is for:

✓ Manual bid optimization sessions where you want data-driven bid recommendations

✓ Accounts with Target ACOS configured at account, campaign, ad group, or keyword level

✓ Keywords and targets with conversion history (minimum 2 orders and 20 clicks in evaluation period)

✓ Sellers who want to understand the math behind bid-to-performance relationships

Key Features

• Performance-based calculation using actual AOV and conversion rates rather than estimated targets
• Dynamic bid caps prevent runaway recommendations even when formula suggests aggressive increases
• Transparent diagnostic outputs show calculation inputs (AOV, CVR, Target ACOS used)
• Manual execution model lets you review recommendations before applying changes

Configuration Guidance

• Evaluation Period: Default 30 days balances data reliability with recency. Reduce to 14 days for fast-moving products or increase to 60 days for slower-converting keywords.
• Data Minimums: The 2 order / 20 click requirements prevent unreliable calculations. Don't lower these unless you're comfortable with higher variance in recommendations.
• Target ACOS Setup: This utility requires Target ACOS to be set. Configure Target ACOS in Ad Manager at account, campaign, ad group, or keyword level before running. Target ACOS cascades down from higher levels.
• Review Before Applying: Since this is manual execution, always review the diagnostic properties ($aov_used, $cvr_used, $uncapped_target_cpc) to understand what drove each recommendation before applying bid changes.

Recommended Workflow

Manual Execution: Change Bid: Set ($) using $target_bid

Syntax

/*
=== Utility: Target CPC Calculator ===
Purpose: Calculate target bids from performance efficiency metrics (ACOS, AOV, CVR) for manual bid optimization.
Dataset: Keywords & Targets
Recommended: Change Bid → Set ($) using $target_bid | Manual Execution
Note: Run on-demand after reviewing performance - not intended for automated daily execution
*/
 
// === Core Settings ===
let $orders_min = 2;                            // CORE: Minimum orders required for reliable calculation
let $clicks_min = 20;                           // CORE: Minimum clicks required for reliable calculation
let $period_eval = 30d;                         // CORE: Performance evaluation period [30 days including today]
 
// === Safeguards ===
let $bid_limit_cpc_multiplier = 2.0;            // SAFEGUARD: Max bid = Avg CPC × 2.0 [e.g., $0.50 CPC = $1.00 max]
let $bid_limit_cpc_period = 90d;                // SAFEGUARD: Period for calculating CPC-based limits
 
// === Segment Filters ===
let $include_campaigns = [""];                  // FILTER: Apply to all campaigns, or specify terms
let $exclude_campaigns = ["NEVER_MATCH"];       // FILTER: Exclude campaigns containing these terms
 
// ============================================================================
// === Segment Logic ===
// ============================================================================
// Advanced logic below - modify carefully
 
// === Target CPC Calculation Method ===
// Formula: Target CPC = Target ACOS × Average Order Value × Conversion Rate
// 
// Example: If targeting 30% ACOS with $50 AOV and 5% CVR:
// Target CPC = 0.30 × $50 × 0.05 = $0.75
//
// This ensures each click costs the right amount to hit your profit target
// given your actual conversion performance and order values.
 
// === Performance Metrics ===
let $recent_cpc = cpc($period_eval);
let $recent_acos = acos($period_eval);
let $recent_aov = aov($period_eval);
let $recent_orders = orders($period_eval);
let $recent_clicks = clicks($period_eval);
 
// Calculate conversion rate
let $recent_cvr = case(
    $recent_clicks > 0 => $recent_orders / $recent_clicks,
    else 0
);
 
// === Calculate Target CPC ===
let $calculated_target_cpc = case(
    target acos <= 0 => $recent_cpc,  // No target set - keep current bid
    $recent_cvr > 0 and $recent_aov > 0 => target acos * $recent_aov * $recent_cvr,
    else $recent_cpc  // Insufficient data - keep current bid
);
 
// === Apply Dynamic Bid Cap ===
let $avg_cpc_for_cap = cpc($bid_limit_cpc_period);
let $dynamic_max_bid = case(
    $avg_cpc_for_cap > 0 => $avg_cpc_for_cap * $bid_limit_cpc_multiplier,
    else 999  // No cap if no CPC data
);
 
let $target_bid = case(
    $calculated_target_cpc > $dynamic_max_bid => $dynamic_max_bid,
    else $calculated_target_cpc
);
 
// === Data Sufficiency Check ===
let $sufficient_data = case(
    $recent_orders >= $orders_min and $recent_clicks >= $clicks_min => 1,
    else 0
);
 
// === Diagnostic Properties ===
// Show calculation inputs for transparency
let $aov_used = $recent_aov;
let $cvr_used = $recent_cvr;
let $target_acos_used = target acos;
let $uncapped_target_cpc = $calculated_target_cpc;
 
let $reason = case(
    target acos <= 0 => "No target ACOS set - cannot calculate",
    $recent_orders < $orders_min => "Insufficient orders for reliable calculation",
    $recent_clicks < $clicks_min => "Insufficient clicks for reliable calculation",
    $calculated_target_cpc > $dynamic_max_bid => "Target CPC exceeds dynamic cap",
    $recent_cvr <= 0 or $recent_aov <= 0 => "Missing conversion or AOV data",
    else "Target CPC calculated from performance metrics"
);
 
let $result = case(
    target acos <= 0 => "No Target ACOS - Cannot Calculate",
    $sufficient_data = 0 => "Insufficient Data - Review Manually",
    $target_bid = bid => "No Change - Already at Target CPC",
    $calculated_target_cpc > $dynamic_max_bid => "Bid Set - Capped at Dynamic Maximum",
    $recent_cvr <= 0 or $recent_aov <= 0 => "Cannot Calculate - Missing Data",
    else "Target CPC Calculated Successfully"
);
 
// === Final Filter ===
state = "effectively enabled"
and (campaign name contains any $include_campaigns)
and (campaign name does not contain any $exclude_campaigns)
and target acos > 0
and $target_bid != bid
and $sufficient_data = 1