It prioritises spending on ads that overreach your target ACOS. It might lead to a surge in spending. It multiplies the bids by a certain factor when your spending is below the threshold you set.
We recommend using it to ramp up new products or relaunch products which have not been advertised for a long period of time. It is mostly meant to accelerate the learning process when the algorithm is missing data. If you are not in this case, it is probably better not to use it.
It helps you control your spendings. Do not confuse with Target Daily Budget
Use it carefully!
The multiplying factor depends on how far the current spend is from the min daily spend. The further the spend is from your goal, the bigger the multiplier. The multiplying factor is capped to 1.2 in order to avoid enormous spend spikes.
It increases the bids by 20 % maximum. The ACOS target might not be respected.
If the strategy does not reach the minimum, you should increase the ACOS target
When a strategy is struggling, it is usually due to the limited number of data points the algorithm is able to gather in order to evaluate your conversion rate. You will need to "boost" your Advertising spend by setting a min Daily Spend for your Strategy.
How to use the min daily spend ?
Go to strategies > Sponsored Products
Choose the strategy to which you want to add “Minimum daily spend”.
Click on Advanced Settings > "Add Target Min Daily Spend"
Enter the minimum amount you are ready to spend on a daily basis.
Our recommendations for inputting the minimum amount for the Min daily spend would be between $5-$20. Note that you would notice a variation in the spend, if there is a high variation then try lowering the min spend and vice versa.
This setup will help your strategy to ramp up. Don't forget that Advertising can only help products that are "Amazon ready". Pay attention to the quality of your detail page, the competitiveness of your pricing, and the speed of your delivery.