HomeRight Pricing & Bid Management
Right Pricing & Bid ManagementSOP

Right Pricing SOP

Updated Jul 6, 2026· 6 min read
Applies to
All GOAL account managers running client campaigns
Primary metric
CPA, cost per acquisition
Dashboard
Periscope, right pricing report
Data window
Last 7 days
Approval
Revisions approved by the Head of Account Management

This document outlines the standard operating procedure for the right pricing of digital advertising campaigns at GOAL. The objective is to optimize campaign spending to achieve a target cost per acquisition, rather than focusing on vanity metrics such as cost per lead. Adherence to this SOP ensures a consistent, data-driven approach to bid management across all client accounts.

Key terminology

Right pricing
Setting and adjusting bids for different traffic sources to achieve a desired cost per acquisition. It involves analyzing data to determine the optimal price to pay for clicks from various channels.
Base bid
The initial bid amount set for a campaign or ad group, before any modifiers or adjustments are applied.
Source modifiers
Percentage-based adjustments applied to the base bid for specific traffic sources, used to bid up or down on channels based on their performance.
Day part schedule
Bid adjustments based on the time of day and day of the week, used to optimize bidding during peak performance hours.
CPA, cost per acquisition
The primary metric for success. The total cost to acquire a new customer, meaning a sold policy.
CPL, cost per lead
A vanity metric measuring the cost of acquiring a single lead. Easy to track, but it does not reflect the actual cost of acquiring a customer.
Periscope
The internal dashboard used to access the right pricing report and other data for campaign analysis.
Traffic channels and sources
The platforms and websites where ads are displayed and from which clicks and leads are generated, such as Tier 1, Tier 3, Home Search, SEO and Premium Referral.
No-attribution channel, NA
A channel where a user returns to a website directly after an initial visit from a different source, so the click is not attributed to the original source.

Procedure, six steps

Each step is one pass through Periscope. Steps 1 to 3 gather data and set targets; steps 4 to 6 set and maintain the bids.

1. Access the right pricing dashboard

Gather the necessary data from the Periscope dashboard.

  • Log in to Periscope
  • Select the relevant property for analysis, such as Home Insurance or Auto Insurance
  • Filter the data by the specific state you are analyzing
  • Set the date range to the last 7 days, so you are working with recent performance data

2. Analyze traffic channels

With the report generated, analyze the performance of the various traffic channels.

  • Identify the highest volume traffic channels in the report
  • Review the average CPC at each ad position for those channels, such as first, second and third
  • Note the click distribution and where the majority of clicks originate

3. Determine target CPA and CPL

Establish clear performance targets from the client's budget and goals before setting any bids.

  • Consult the agent to understand their monthly budget and lead volume goals
  • Calculate the target CPL that aligns with their budget
  • Derive the implied CPC required to meet those goals

4. Set the base bid

The base bid is the foundation of the entire bidding strategy.

  • Identify a high-volume traffic source that is middle-ground on cost, commonly a Tier 3 source at the second ad position
  • Set the campaign's base bid to match the CPC of that source and position

Best practice

Choosing a middle-ground source for the base bid provides a stable foundation. It prevents overpaying on average while still allowing competitive bidding on higher-quality sources through modifiers.

5. Right price the traffic sources

Apply modifiers to the base bid so each traffic source is priced by its relative value.

Set the source your base bid came from to 100%, then set every other source to the percentage difference between its CPC and the base source's CPC.

Case Modifier
Base bid source 100%
CPC 25% more expensive than base 125%
CPC 15% cheaper than base 85%
High-cost, high-intent search, budget permitting 200 to 300%

High-cost, high-intent search channels such as Home Search may need the higher modifier to remain competitive. Only do this if the agent's budget can sustain the higher CPCs.

6. Monitor and adjust

Right pricing is not a one-time setup; it requires continuous monitoring.

  • Monitor campaign performance continuously, with a primary focus on CPA
  • Review the right pricing report in Periscope to identify changes in market dynamics
  • Lower a source's modifier when it is not meeting the target CPA
  • Use performance data to validate the initial right pricing decisions

Critical nuances

Directional accuracy over precision

The goal is not to be perfectly precise but to be directionally accurate. The market is dynamic and prices fluctuate. Make data-informed adjustments that move closer to the target CPA.

Budget-relative bidding

Right pricing is relative to the agent's budget. Avoid bidding aggressively on high-cost channels for agents with small budgets, as this exhausts their funds quickly and leads to poor results.

Data-driven decisions

All right pricing decisions must come from the right pricing report and campaign performance, not from assumptions or from what worked for other agents in different markets.

CPA is the key metric

Always optimize for CPA, not CPL.

Warning

A low CPL does not guarantee a low CPA. Optimizing for CPL can buy poor-quality leads that never convert.

Market fluctuations

Watch for market fluctuations such as holidays, or major carriers changing their budgets, as these significantly impact traffic costs. Be prepared to adjust the strategy accordingly.

The 2x base bid strategy

In competitive markets, set the base bid at 2x the target CPC and use the day part schedule to bid down 50% during non-peak hours. This provides a competitive edge during peak times.