Maximize Results with Target Cost Bidding
How Snap is leveraging AI, ML, and automation to help advertisers drive performance.
Over the past few years, we have been laser focused on improving our ad platform to drive results for our partners. The investments we’ve made in AI- and ML-powered solutions are helping us show the right ad to the right person at any given time. We recently rolled out improvements to our automated Target Cost (tCPA) bidding strategy, powered by ML technology, which is driving both Snapchatter engagement and performance for advertisers.
Target Cost bidding is built to help advertisers scale efficiently and easily on Snapchat. This bidding strategy allows advertisers to set a target cost-per-action (tCPA) that they would like to achieve, and our systems will consistently deliver a CPA within a reasonable range of that bid. Our cutting edge ML technology will now automatically adjust bids on behalf of advertisers in a way that maximizes scale, while respecting the marketer’s desired CPA goal. This makes tCPA a compelling solution for any performance advertiser looking to reach Snapchat’s engaged global community of over 850 million people.
The recent engineering and ML investments we’ve made in Target Cost bidding enable us to more accurately predict conversion events. As a result, early adopters are seeing positive performance benefits when compared to their prior bid strategy. Advertisers using Target Cost bidding on Pixel Purchase and Pixel Sign Up see, at the median:
A 21% decrease in 28/1 cost per purchase and 32% decrease in 7/0 cost per purchase.
A 33% increase in 28/1 ROAS and 16% increase in 7/0 ROAS.¹
Advertisers have taken notice of the new offerings and so far have benefited from improved performance after shifting their bid strategies. For example, Headspace saw a 2x increase in conversion volume with 47% more efficient CPA.²
When we launched tCPA campaigns, we started seeing lower CPM and CPA immediately and replaced it as our evergreen strategy within two weeks.
Revenue partners like Smartly, ROI Hunter, and more have also been generating great results for their clients by leveraging Target Cost bidding.
Snap’s investment in AI and ML continues to push performance marketing forward, and Smartly is proud to be one of the first partners to bring these innovations to advertisers at scale. AI is at the heart of everything we do, driving performance at every level. With Snap’s tCPA performance solution, we are seeing brands unlock unprecedented advertising performance and scale while maximizing efficiency.
Target Cost bidding is a compelling offering from Snap and we have been seeing growing adoption within our client base. There is strong potential in combining ROI Hunter-powered product segmentation with Snap’s tCPA capabilities to achieve even better results from Snapchat campaigns, and we look forward to scaling up in the future.
With improvements to Target Cost bidding, advertisers can rely on our ML tech to maximize business outcomes while meeting their cost and efficiency goals without requiring inventory or format changes. More and more advertisers are now adopting Target Cost Bidding with great success – please visit the Snapchat Business Help Center or contact your Snap sales partner to get started.
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