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Transcription: 

Hello, and welcome to the Zon Tools Tips and Tricks Series. In this video, I’m going to show you how to use the Threshold Builder that I compiled for you guys.

We’ll go through how to use the data that you already have for campaigns and products that you’re already running on your own set-up and use the data to fill in what we need to know within the Threshold Builder.

To get out, as output, the threshold that you should  input in the new PGN that you’re about to create. Or, the threshold that you should input in the same own set-up campaign that you want to automate based on your restored data.

First of all, let’s talk about the product. From this example, we’ll be using our experimental account. I’ve already generated Silicon Product. Let’s say that we are selling.

You need to click, ‘Click Here to Download’ and once done, you will be taken to the Google Sheet page. (This page is not editable. You cannot edit and you cannot request access to it.)

Click the File tab and choose either to download this as an Excel file to be stored on your computer or to import it on your Google Drive (either or both will work just fine.)

I’ll go back to the Silicon Product page and open the custom search term report. I’ll sort down by ACoS descending (which was already done just to speed up the video).

What I can see is that in this example this product seems to be selling for roughly $47.99. This is one sale of the SKU that we’re advertising. So, I’ll enter it in the Product Sale Price field.

For Profit Margin, since this is a fictitious product, I’ll set it at 50%. Just put 50. You don’t need to include the percentage symbol.

PPC Profit Expected is the profit you expect out of this PPC campaign, this PGN or your current setup.  If you’re running this campaign for traffic and visibility, use zero (0).  But if it’s for profit, I put how much profit you expect after all your PPC spends. If for instance you want a 10% profit after you pay for the PPC and everything, input it in the field. In this case, I’d like to run this campaign for visibility and traffic. I don’t expect any profit. I simply want to have as much traffic and visibility as possible at break-even. So, I’ll put zero (0).

Next is the Average CPC (Cost per Click). To fill in this box, I need to check our search term report for that data. As seen here, the value is $0.96 so we enter it.

The Average CR (Conversion Rate) is also a data that I can get from the search term report, which is 11.9.

For Average Bid, it’s not on the search term report but on the keyword report. I’ll click on the Silicon Product to open the keyword report in a new tab. In this case, I will sort it by orders, with the bid of the keyword which has made the most orders on top.

As you see, we don’t have many keywords. What you should do is use the average bid of the keywords with the highest volume. For this example, I’m going to use the top 6 keywords to make it easy. So, to find the average bid of the 6 keywords, I’ll add up 2.02, 1.62, 1.42, 1.77, 1.17 and 1.27 and divide it by 6. The average bid is 1.54.   

Next, Goal Sales per day. You want to generate at least the same sales that your old campaign was generating. So, go back to your old campaign and check how many sales you generated in the last six months. We generated 27,000 sales, again, this is fictitious. 27,000 divided by six months, and thereafter by 30, gives the daily figure which is 150.

So, we’ll input that into the field as our goal. 

I’ll cover divergence later.

Up to this point, I’ve showed you how to select the thresholds based on your historical data.

The next step will be to select what keyword you want to take from your old campaign to your new PGN in case you are creating a PGN.

Basics aside, I’ll do it on the custom search terms report.

We have the custom search term report of the Silicon Product campaign here.

What I really need to do is to sort this descending by ACoS 7. Then I’ll salvage only all the keywords or search terms that have been historically performing within that threshold.

For the purpose of this video, I’m not going to use all of them. I’m going to sort them down by sales volume 7 because I don’t want to try other keywords.

Right here, I got the highest volume keywords. I will only take the ones with more than 30 sales. As a matter of fact, all of them are well within my ACoS. They’re a very good starting point for the new PGN.

I’ll copy and paste the 11 terms in the Google Sheet. 

Once more, to clarify the steps, I initially sort by ACoS 7 but because of too many terms, (for the purpose of this video) I sort them by sales 7 and simply took the 11 terms with the highest sales dollar amount. I made sure that they’re all within our set ACoS threshold which is 50%. Only after those stipulations are met will I copy and paste them in our threshold bidder form.

If this wasn’t for training purpose, I’d sort by ACoS and use everything that is below the ACoS.

The next step is to check what our form tells us. Because we only have 11 keywords, our advice daily budget will be only about 90 dollars. The maximum spend will be about 15.40. Our default bid is 1.5. Our minimum bid is 0.72. Our minimum action clicks is 10%. Our minimum conversion rate is 9.  The bid increment is 0.44. The maximum bid is 3.47. The daily PGN budget is 89, and the target maximum ACoS is 50.

Based on the historical data inputted, the threshold builder gives this output.

Over here, if you click any of these boxes, you’ll be able to see the formula that we used.

Whenever you download it on your drive or your computer, you will be able to adapt it to whatever you think is right.

As a DISCLAIMER, this a quick and dirty thing that I gave you guys to set-up threshold quickly. I don’t know your business nor your product, ULTIMATELY, you take responsibility for whatever value you insert in our tool for automation. We take no responsibility if this doesn’t work well for you. It’s just something that should help you understand and create a PGN and automate whatever set-up you have here, without losing too much time going over the videos several times, and reading between the lines.

Let’s analyze Bid Divergence.

Whenever you change the divergence, data changes. My advice is to keep it at 25 because based on my experience and considering my business and my numbers, 25% divergence is what makes sense. I would expect this to be the rule for 95% of the businesses out there. However, as I said earlier, ultimately, you take responsibility for whatever value you input in our system and whatever output that number generates for your business.)

Once we have all these data, everything becomes very simple.

We go back to Zon Tools platform.

Click ‘Add New’ to create a new PGN. I’ll name it “Video”.

I’ll open the ‘Advanced Settings’ and now, it’s just a matter of copy-pasting.

Maximum Keyword Spend is copied and pasted in the Zon Tools, as well as the other values as follows: Target Maximum ACoS is 50%, Default Bid is 1.5, Daily Budget is 89, Minimum Bid is 0.72, Maximum Bid is 3.47, Minimum Action Clicks is 10, Bid Increment is 0.44, Minimum Conversion Rate is 9.

For SKU, I’ll input whatever SKU you have and that is 2. I’ll use the 11 keywords from the Google Sheet.

Click “Save New Product Group”, and the PGN is successfully created.

To automate this same campaign which we worked on in our second product, rather than creating a new PGN, go here to open up the “Rules” and input the same thresholds within this campaign in order not to create a new PGN in your system but automate your current system based on the data. Then, you can get back on.

Again, Target Maximum ACoS is 50%, Minimum Action Clicks is 10, Maximum Keyword Spend is 15.40, Minimum Bid is 0.72, Maximum Bid is 3.47, Bid Increment is 0.44, Minimum Conversion Rate is 9.

Enable “Override Custom Rules” and Click “Save Rules”

So far I’ve shown you two things. Based on the data that we gathered over the last six months, over the fictitious product in our fictitious campaign, I used that data to generate possibly the ultimate threshold that we should use in order to automate our current setup or to use on our new PGN with these keywords and that related budget.

I hope this video has helped you understand the Threshold Builder a little bit more.

Lastly, I want to be clear about where to find the Threshold Builder for download. It’s on www.zon.tools/threshold-builder/ 

Thank you very much for watching, I’ll see you in the next video.