Sembot CPC Strategy |
Sembot CPC is a bid-setting model within the Ads panel that functions similarly to manual bidding but offers an additional feature: automatic initial bid differentiation. This allows more expensive products to receive higher starting bids, while cheaper ones get lower bids. The mechanism is based on predefined ROAS (Return on Ad Spend) and Conversion Rate (CR) values, enabling dynamic bid adjustments when generating a standard product campaign.
Example of How It Works:
Let's assume we have a product priced at 300 PLN, with the following settings:
- ROAS = 5 (i.e., 500%)
- CR = 1% (i.e., 0.01 in the system)
The CPC bid is calculated using the formula:
Substituting the values into the formula:
This results in 60 groszy (0.60 PLN) for Poland. In the Google Ads system, costs are processed in microamounts, calculated as follows:
Since 1.00 unit of currency equals 1,000,000 microamounts, the final CPC bid is 0.60 PLN.
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