Acceptable Profit

Updated 3 weeks ago by Daniel

What is Acceptable Profit?

The Fire and Forget® Acceptable Profit optimization will adjust the campaign CPC to maintain the media buyer defined margin. The Acceptable Profit optimization will determine the Earnings Per Click (EPC) of the campaign and adjusts the campaign CPC.

Acceptable Profit only runs if the Sample Size has been met in the Look Back Days period.


How Does Acceptable Profit Work?

In the Fire & Forget Settings drawer in Campaign Details or during Add Campaign you can choose one of 3 options: None, CPA Goal, or Acceptable Profit. Fire & Forget uses the EPC to determine how to optimize with Acceptable Profit.


How does Maximus determine the EPC for Acceptable Profit?

EPC is calculated as revenue divided by clicks.

Fire & Forget uses look back days to determine how far back you will look for the Sample Size. Click here to read more about the Look Back Days. Click here for more information on sample size.

Maximus uses the data during the look back days period if the sample size has been met to calculate Acceptable Profit.This means that as long as Sample Size is met, data from ALL Look Back Days is used, not just the specific time period where the Sample Size clicks occurred.Acceptable Profit does not look at a minimum conversion amount. If your campaign has Acceptable Profit enabled, has met Sample Size, and has little or no conversions, Fire & Forget will reduce your bid to the Lowest Bid amount. Click here to learn more about the Lowest Bid.


How To

Set the Optimization Mode

Click on the button on the Campaigns section of Fire & Forget Settings to switch Optimization Modes for Fire & Forget.


Set the Sample Size

Enter the value you desire for sample size.


Set the Acceptable Profit

Enter the percentage value you want to use.



Examples

Example #1

Sample Size: 500

Acceptable Profit: 20%

Current Clicks: 250

Current EPC: $0.60

Maximus will do nothing because the campaign has not met the Sample Size.


Example #2

Sample Size: 500

Acceptable Profit: 20%

Current Clicks: 600

Current EPC: $0.60

Sample Size has been met, and the Acceptable Profit goes into effect. Maximus will set the campaign CPC to $0.48 ($0.60 - 20% = $0.48).


Common Uses

Using Acceptable Profit allows your campaigns to optimize themselves and stay at a steady profit margin. Enabling this feature to meet your ideal profit percentage takes monitoring and work off of your hands allowing you to manage multiple campaigns easier and handles the constant changes of CPC to make a campaign as profitable as possible.

Acceptable Profit works best once you have found a winning image and text combination for your campaign. Enabling Acceptable Profit with poor performing ads may reduce the profitability of the campaign due to those poor ads contributing more clicks without as much revenue.


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