What is Blended ACoS?

Blended ACoS is the total advertising spend divided by the total sales (attributed and organic) for some product(s).

How does it work?

Blended ACoS Optimization will provide recommendations to increase target ACoS on goals (or segments in goals) when:

  • Blended ACoS across all goals in Strategy is below target Blended ACoS
  • Blended ACoS for the goal is below target Blended ACoS

Blended ACoS Optimization will provide recommendations to decrease target ACoS on goals when:

  • Blended ACoS across all goals in Strategy is above target Blended ACoS
  • Blended ACoS for the goal is above target Blended ACoS

This saves you the time of calculating the Blended ACoS performance for the selected goals, as well as having to figure out the changes to be made to steer ad spend to push these goals toward the target Blended ACoS.

Inputs:

Target Blended ACoS (%)

The Blended ACoS you are hoping to achieve across all goals you have selected for the strategy.

Include recommendations to change keyword boosts

By turning on this toggle, you will receive Recommendations to change the target ACoS on your keyword boosts. All spending on keyword boosts will still be included in calculating Blended ACoS, whether you turn on this toggle or not.

Goals in multiple strategies:

Each goal can only be in one Blended ACoS Optimization Strategy.

Best Practices:

Blended ACoS represents how much you are willing to spend on advertising for each sale more accurately than ACoS, as it accounts for Amazon's flywheel effect. For this reason, Blended ACoS targets are typically based on the Blended ACoS you need for profitability.

If you want to ensure a specific Blended ACoS across your entire account or a portfolio of products, group these goals together. If you need a specific Blended ACoS for each goal then it may make more sense to have each goal in a separate strategy.

When setting the target Blended ACoS for the strategy, choose a target which is reasonably close (within 4%) of the overall Blended ACoS for the goals in that strategy.

When you see a Recommendation to increase or decrease the target ACoS for a goal, consider what your strategy for that goal/segment is before accepting or rejecting the Recommendation.

Important Notes:

Blended ACoS Calculation

Blended ACoS calculation includes Sponsored Product, Sponsored Display and DSP spend, however, Recommendations will only be on changes to Sponsored Product campaign segments. Sponsored Brand spend is excluded as this cannot be attributed to specific ASINs.

For Vendors

Vendors must upload weekly total sales to have access to Blended ACoS Optimization. As total sales run from Sunday-Saturday of each week, recommendations will only be available from Monday-Wednesday based on the previous week's sales data.

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