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Introduction
Total ACoS is the total advertising spend divided by the total sales (attributed and organic) for some product(s).
Creating a "Total ACoS Optimization" strategy will provide recommendations to increase target ACoS on goals (or segments in goals) when:
Total ACoS across all goals in Strategy is below Total ACoS target
Total ACoS for the goal is below target Total ACoS
The recommendations will instruct to decrease target ACoS on goals when:
Total ACoS across all goals in Strategy is above target Total ACoS
Total ACoS for the goal is above target Total ACoS
This saves you the time of calculating the Total 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 Total ACoS.
Best Practices
Total 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, Total ACoS targets are typically based on the Total ACoS you need for profitability.
If you want to ensure a specific Total ACoS across your entire account or a portfolio of products, group these goals together. If you need a specific Total ACoS for each goal then it may make more sense to have each goal in a separate strategy.
When setting the target Total ACoS for the strategy, choose a target which is reasonably close (within 4%) of the overall Total 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.
Factors To Consider
Each goal can only be in one Total ACoS Optimization Strategy.
Total ACoS Calculation:
Total 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. Set a target lower than what you want the total ACoS to be to account for Sponsored Brand spend.
For Vendors
Recommendations will only be available from Monday-Wednesday based on the previous week's sales data. Please ensure that your Vendor "Sales & Traffic" tab is authenticated.
Strategy-Creation Guide
1️⃣Go to the Recommendations tab in the left sidebar (1), then locate the Strategies section (2). From the list of suggested strategies, find the "Total ACOS Optimization" strategy and click "Get Started" (3).
2️⃣ The Strategy creation flow will require the following criteria to be entered:
Strategy Name: Give a name to the Strategy.
Target Total ACOS: The Total ACoS you are hoping to achieve across all goals you have selected for the strategy. Review our Best Practices here.
Include Keyword Boost Changes: By turning on this toggle, you will receive Recommendations to change the target ACoS on your Keyword Boosts Campaigns. All spending on Keyword Boost will still be included in calculating Total ACoS, whether you turn on this toggle or not.
This is a Vendor Account: activate the toggle if this is a Vendor account. Vendor account owners are required to upload weekly Total Sales CSVs from Vendor Central at the beginning of the week in order to allow Total ACOS Calculations.
Select Goals: include the goals to the strategy you wish to receive recommendations goals. This applies to SP goals only.
3️⃣ Once the above-mentioned information is entered, click on the"Create Strategy" purple button.
What Happens After Creating a Strategy?
After creating a strategy, Perpetua's ad engine will begin generating recommendations for you automatically.
Learn more about how to view, accept, or dismiss a recommendation from this other article related to Recommendations and Strategies.
When Will I Receive a Recommendation?
When specific criteria are met, Perpetua will generate recommendations for you to review, allowing you to either accept or dismiss them. In the "Introduction" section of this article, we explained when the ad engine suggests increasing or decreasing the Target ACOS for the goals included in the strategy you've created.
FAQs
Find the related Frequent Asked Questions here.
Article last updated October 2024. If you find this information to be out of date, please contact hello@perpetua.io.