On Acosbot, there are three Amazon PPC advertising automation strategies to choose from: Boost, Max Profit, and Target ACoS (Advertising Cost of Sales). In this article, you will learn how the Target ACoS Amazon ads automation strategy works.
What is the goal of the Target ACoS automation strategy?
The goal of this Amazon Ads automation strategy is simple — to achieve a specific ACoS level set by you.
Within your budget, Acosbot optimizes bids to ensure that the ratio of advertising spend to advertising revenue aligns with your expectations.
How does the Target ACoS strategy work?
The key parameter guiding Acosbot algorithms is the ACoS coefficient.
If increasing the bid results in a significant increase in sales and a decrease in ACoS, bringing it closer to the set target ACoS, Acosbot will increase the bids.
However, if raising the bids leads to diminishing sales growth with increasing costs, moving away from the target ACoS, Acosbot will reduce the bids and cut costs.
Boost and Max Profit strategies aim to optimize profit or increase sales while maintaining product profitability. In contrast, the Target ACoS strategy focuses solely on campaign cost optimization, concentrating exclusively on the ACoS indicator.
For which campaigns should you use the Target ACoS strategy?
We recommend applying this type of strategy in automatic campaigns or manual campaigns with popular and frequently clicked keywords (over 100 monthly, at least 25 weekly).
For automation to work correctly and achieve the expected results, it needs to be based on a sufficiently large amount of data. If Acosbot has limited data, few impressions, clicks, and orders, it will be challenging for it to find a way to achieve the target ACoS. This principle applies to other types of strategies as well. The more data available, the better decisions algorithms can make.
Therefore, we suggest adding several broader keywords to your campaigns rather than a larger number of specific keywords. Only then will Acosbot be able to effectively automate PPC ads 100%.
