Bid Settings

What is an ROI Target?

An ROI (Return on Investment) Target is the ROI that you aim to achieve through Takealot ad campaigns. This gives you more control over your campaign targets.

Setting an ROI Target

To set an ROI (Return on Investment) Target,

1. Go to Bid Settings from the Dashboard from the Campaigns section.

2. After landing on Bid Settings, select ROI as your bid setting.

3. Set your Campaign level target ROI taking into consideration the Suggested ROI. Suggested Target ROI is calculated through Artificial Intelligence technology after analyzing various contributing factors like predictive SKU Score, SKU category, competition analysis, etc.

4. Category level Target ROI and SKU level Target ROI can be set from Advanced Bid Settings.

Frequently Asked Questions on Bid Settings (Target ROI and CPC)

1. How do I choose between Target ROI and Manual CPC as the bidding setting for fulfilling my advertising goals?

We recommend setting Target ROI as the bidding setting if you have been marketing your products through Takealot for more than 6 months. This is because, for a period of 6 months, adequate data on the product catalog becomes available.

If you a new brand/seller on Takealot, or if you want to promote a certain type of products (for e.g. slow-moving inventory), we recommend choosing Manual CPC as the bid setting.

2. How much ROI can I expect if I choose Manual CPC?

Choosing Manual CPC leads to higher impressions and clicks for a product ad, resulting in an increase in product views. However, a specific ROI cannot be assured with the Manual CPC selection.

3. What should I do if my actual ROI is less than the Suggested Target ROI?

Smart algorithms that power Takealot Ads campaigns are engineered to help you achieve the suggested Target ROI.

Suggested Target ROI is calculated by analyzing numerous factors like competition, applied discounts, inventory status, etc.

A change in some of these factors (after a Suggested ROI has been calculated), like top products going out of stock, exclusion of top products from advertising enabled catalog, changes in discount, competition changes, etc. can lead to actual ROI not matching the Suggested Target ROI.

4. What are the different levels at which Target ROI or Manual CPC can be set?

Target ROI and Manual CPC can be set at three levels:

• SKU level

• Category level

• Store level

NOTE: SKU level Target ROI or Manual CPC takes the highest precedence over Category level and Store level settings. The following is the priority given to the three levels.

SKU level - highest precedence or priority

Category level - higher precedence or priority than Store level setting but lower than SKU level setting

Store level - lowest precedence

Here is an example to show the precedence or priority given to the three levels:

Level	Product Details	Manual CPC in ZAR (R)
SKU	Black t-shirt (SKU ID: 1)	6
SKU	Blue t-shirt (SKU ID: 2)	7
Category	Men's apparel (SKU ID: 3,4,...)	5
Store		4

• SKU ID: 1 (Black t-shirt) and SKU ID: 2 (Blue t-shirt) will have bids of R6 and R7 respectively.

• SKU ID: 3, which is an SKU in Men's Apparel category, will have a bid of R5

• All the SKUs from the Women's apparel category will have a bid of R4 as that category is covered at the Store level for which manual CPC is R4`.

5. How do I decide the level at which I should apply Manual CPCs or Target ROI?

• Typically, we don't recommend setting a different Target ROI or Manual CPC at the SKU level. It can be utilized in certain situations when you want to boost impressions and clicks for a particular SKU.

• If your product portfolio falls under multiple product categories, (for e.g., FMCG and Fashion), then setting Target ROI or Manual CPC at the Category level is useful.

• If your products fall under a single category or under similar categories, then setting Target ROI or Manual CPC at the Store level is helpful.

6. Why is the Suggested ROI low for my campaign?

An aggressive Target ROI, i.e. higher the Suggested ROI, can result in a decrease in successful auctions for the advertised products, i.e. it can lead to unsuccessful bidding for the products. This directly lowers the ad performance, brings down the assisted conversions and negatively affects budget utilization. We recommend setting the Target ROI as the Suggested ROI.

7. Why is the Suggested ROI high for my campaign?

A higher ROI suggests scope for better ad performance. Setting the Target ROI as Suggested ROI, in this case, will result in the same number of conversions but in lesser ad spends. Hence, the conversions (successful transactions) won't change, only that budget utilization becomes more optimized.

8. I don't see any Suggested ROI. What should I do?

Ideally, a Suggested ROI should be generated. If no Suggested ROI is generated, it suggests that the smart algorithms is still learning about your product category.

• If you are getting a good number of clicks and ad budget is getting spent, consider increasing the Target ROI.

• If you aren't getting a satisfactory number of clicks and the budget isn't getting consumed, decreasing the Target ROI will help.