Understanding Shop Campaigns
Before you start creating Shop Campaigns, review this page to understand Shop Campaigns campaign options, terminology, and best practices for setting your Shop Campaigns budget.
While conversions through Shop Campaigns ads aren't guaranteed, you pay only for successful customer acquisitions. Learn more about paying for Shop Campaigns.
On this page
Shop Campaigns ad options
There are two types of ads associated with Shop Campaigns, which you can choose in the Tactics section when you create a campaign:
Ads on Shop
Ads on Shop include offers that let customers earn or save Shop Cash as an incentive to purchase from your store.
After you create a Shop Campaign, the offer displays to customers on the Shop app and Shop on the web.
Ads on other platforms
Ads on other platforms are optional. If you select Ads on other platforms when you create a Shop Campaign, then Shop might run ads promoting your campaign through third-party platforms, such as Shop's Facebook, Instagram, and Google accounts.
When you opt in to Ads on other platforms, you might be prompted to set up Shopify Audiences, turn on data sharing, and connect your Meta Business Account and ad account. You can choose to complete Shopify Audiences setup at a later time to generate audiences lists and export them to your ad accounts.
Data from your Meta ad account might be used to inform ad strategy, optimize your ads, and improve audience targeting. Shop runs Shop Campaigns ads only through Shop's Facebook, Instagram, and Google accounts, and doesn't run ads through your own Meta or Google accounts.
Customer targeting options
When you create a Shop Campaign, in the Targeting section, you can target one of the following customer options per campaign:
- The New customers option targets first-time customers to your store.
- The Lapsed customers option retargets customers who have purchased from your store in the past. You can target customers from a specific time period by specifying the Time since last order.
You can market your campaign to customers in the United States or Canada.
Understanding Shop Campaigns budgets
When you create a Shop Campaign, you need to set a Daily budget. Your Daily budget is the total amount of money that you want to spend each day that your campaign runs.
If you don't reach your daily budget on a single day, then the remaining budget for the day is rolled over into subsequent days to optimize your offer spend.
Shop Campaigns are rolled over from Sunday to Saturday each week, and the rollover amount is reset to $0 USD each Sunday. Some days you might spend less than your daily budget, and on others you might spend more, but you won’t exceed your total budget for the calendar week. For example, if your daily budget is $100 USD, then your offer spend won't exceed $700 USD in total for the calendar week.
Shop Campaigns budget terms
Review the following table to understand the different parts of your Shop Campaigns budget:
| Budget term | Description |
|---|---|
| Customer acquisition cost (CAC) | This is the price you pay when a customer converts. You are never charged more than this amount for a conversion. Learn about best practices for setting your customer acquisition cost. |
| Return on ad spend (ROAS) | This number is the order value divided by the acquisition cost. Learn about setting a target return on ad spend. |
| Spend | This is the total budget that has or will be spent on a campaign. |
Setting your customer acquisition cost
The Customer acquisition cost is the cost that you're charged for each customer who either places an order redeeming your offer, or places an order from your store after viewing a campaign ad. The minimum and recommended customer acquisition cost values are based on your store's average order value.
The maximum increase in value to a customer's Shop Cash balance for an offer is based on your customer acquisition cost. A higher acquisition cost creates a more compelling offer, and results in your Shop Campaign being ranked higher in the list of offers displayed to customers.
Your customer acquisition cost for a customer is the same amount whether a customer redeems an offer, or makes a purchase in Shop after clicking an ad. For some orders, you're charged only a portion of the customer acquisition cost, and on other orders, you're charged the full customer acquisition cost. You're never charged more than your maximum set customer acquisition cost. Learn more about paying for Shop Campaigns.
Setting a target return on ad spend
The Target return on ad spend is the specific ad spend return that you set for your advertising campaigns. When you set your target return on ad spend, it represents the desired ratio of revenue that you make, compared to what you spend on advertising your Shop Campaign.
For example, if your target return on ad spend ratio is 2.0, then Shop Campaigns ensures that for every $1 USD that you spend on ads, your campaign generates at least $2 USD in revenue. This means that if you set your ad spend budget to $1000 USD per week, then your campaign generates at least $2000 USD per week in revenue.