GMV Max ROAS Protection

What is GMV Max ROAS Protection?

1. ROAS Protection is designed to encourage sellers to deliver more stable performance with GMV Max Custom ROAS campaigns. Sellers will automatically receive 1:1 free ads credit rebate: (a) when actual ROAS falls below a certain threshold; and (b) if ROAS Protection criteria is fulfilled.

How to be eligible for ROAS Protection?

1. To enjoy ROAS Protection, products must be promoted using GMV Max Custom ROAS/Shop GMV Max (under auto top-up Escrow enabled).
2. On a weekly basis, campaigns must meet following criteria to get the 1:1 free ads credit rebate:
3. Campaign must meet the minimum weekly ads conversion count (where broad GMV > 0):

1. ROAS Fulfillment Rate must be below the following thresholds:

ROAS Fulfillment Rate = Actual ROAS ÷ Target ROAS (for attributed ad clicks)

Under what conditions will sellers exit from ROAS Protection and how will sellers be able to re-qualify for ROAS Protection?

1. A campaign will not be eligible for 1:1 free ads credit rebate if any of the following exit conditions occur. A campaign will subsequently be eligible for free ads credit rebate in accordance with the re-entry rules.

How does ROAS Protection work?

●Eligible 1:1 Free Ads Credit Amount

○ System calculates the eligible rebate amount on a weekly basis for each campaign.

■ Eligible Amount: if broad GMV > 0, then Ads Expense - Ads GMV / (target ROAS of attributed ad click* 80%)

○ If "Rapid Boost" is enabled while being under ROAS Protection, the eligible rebate amount is calculated as follows.

■ Eligible Amount: if broad GMV > 0, then Ads Expense - Ads GMV / (target ROAS of attributed ad click * 70%)

●1:1 Free Ads Credit Distribution

○ Sellers will automatically receive the eligible rebate amount in the form of 1:1 free ads credit.

○ Generally, the 1:1 free ads credit rebate will be distributed the following week. However, slight delays may occur during certain periods or cases (for example, promotion periods or in case of system bugs).

How to check the ROAS Protection feature?

1. On Ads Homepage

○The total rebate amount credited to date, rebate amount from the last 7 days, and campaign count in ROAS Protection are all displayed in ROAS Protection module.

2. On Ads List

○ Sellers can check the box in the top-right corner to filter only ROAS Protection campaigns.

○ Campaigns under ROAS Protection will be marked with a "ROAS Protection" tag.

○ Campaigns marked with a green ROAS Protection tag indicate a valid status, while campaigns marked with a gray tag indicate an invalid status (for example, if any exit conditions occur).

3. On Ad Detail Page

○ The eligible 1:1 free ads credit amount is displayed and weekly rebate status / amount can be expanded by clicking on Rebate Details.

4. On My Account Page

○ ROAS Protection transaction type will be introduced to record ROAS Protection rebate payment records on Ads Wallet page and 1:1 Free Ads Credit page.

GMV Max ROAS Protection FAQ

● How is the ROAS Protection feature different from the Pay per Sale model?

The Pay Per Sale feature will be replaced by the ROAS Protection feature to provide more reliable delivery and better experience.

a. Payment Method Change

i. Pay per Sale: Pay when an order is placed.

ii. ROAS Protection: Pay per click but receive free ads credit rebate when actual ROAS falls below a certain threshold; and ROAS Protection criteria is fulfilled, making it more seamless and efficient.

b. Budget & Eligibility Improvements

i. Pay per Sale:

● Sellers needed to consistently meet item eligibility requirements and activate the feature to enjoy the benefit.

● Higher budgets were required to use the feature.

ii. ROAS Protection:

● Automatically applied to all GMV Max Custom ROAS campaigns.

● No special budget requirement to use the feature.

Note: The Pay Per Sale feature is available only to selected sellers

● What do sellers need to do for existing Pay per Sale campaigns?

○ No action required. All Pay per Sale campaigns will be automatically migrated to ROAS Protection, with new rules taking effect after migration. The migration will happen gradually.