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 Max Profit Amazon ads optimization strategy works.
What is the goal of the Max Profit strategy?
The aim of the Max Profit strategy is to maximize the profit from a product. Acosbot optimizes keyword bids to ensure the highest possible profit at the end of the day.
How does the Max Profit strategy work?
For this strategy to work effectively and maximize product profit, you need to provide the product margin.
When the product is profitable, Acosbot considers other metrics and begins searching for keyword bids that will result in the product generating the highest revenue with the lowest cost.
If the product is not profitable, Acosbot will lower bids to reduce costs and start generating profits.
Using this strategy, Acosbot takes into account total sales (organic and advertising). It may spend more on advertising, even if it does not directly increase advertising sales. However, this can still be beneficial for product profitability as it may boost organic sales.
When to use the Max Profit strategy?
It is recommended to use the Max Profit strategy for mature products with a strong market position and stable organic sales.
If applied too early for a new product, it may have adverse effects, as advertising for new products is not immediately profitable. Acosbot, in an attempt to achieve profit, may lower bids, reducing the product’s visibility and hindering its profitability.
In the early stages of a product’s life, it may not generate immediate profits, as it is not well-known to Amazon or customers. Investing in promotion is necessary to establish the product and make it profitable in the future.
When is it worth switching from the Max Profit strategy to Boost?
If your product is not ranking high and a relevant season is approaching (e.g., summer for swimwear and beach shorts), you may consider using the Boost strategy.
This allows you to target top positions and increase product visibility instead of focusing solely on profit.
