Transcription: 

The last one is the Minimum Conversion Rate. This is a tricky one. 

In this demonstration we’ll consider the range of keywords that have an ACoS between 32 and 35%. The default conversion rate is 10. If a keyword is around 22, 32 or 35%, , we’ll monitor it to see what the conversion rate is doing. If the keyword is already in 32 or 35% at a conversion rate below 10, we will pause it.

What’s the reason behind this? If at 32% ACoS I’m making only very few cents and 35% ACoS is break-even, then I’m making zero money out of it. So, if that keyword costs me that much without making any money, plus I’m not even converting wealth for it, why keep the keyword?

In my business I set up a minimum conversion rate of 10%. If the keywords are not bringing money in, I want to make sure they are converting so they don’t affect the overall conversion rate of my listing. And, they bring something positive rather than just sucking money and hurting my conversion.

Alternatively, if you’re more conservative, if you’re running a maintenance campaign, or choose to run a campaign to make profit, and you were to set the ACoS at 25% in order to sell a 10% profit for you, the conversion rate should be 0.

I wouldn’t apply this one simply because even though keywords may reach 22-25% ACoS, you are still making a 10% profit the way you set up your threshold. The conversion rate of those keywords wouldn’t really matter because they’re bringing in money.  They’re bringing in 10% profit every time.

So, if you are running a strategy for traffic and visibility, and you run an ACoS that breaks even, I would advise you to use the conversion rate.

I use 10. You can be a little bit more conservative, maybe 5 or a little bit more aggressive, up to 15.

But if you’re running a campaign and you’re setting your strategy on the threshold in order to make a profit, I would set this to 0.