Minimum Daily Spend is a feature available only for ACOS Target strategies. It helps boost ad spending when your spending is below a certain threshold. It might lead to increased spending as it raises your bids by a factor when necessary.
When Should you Use It?
- To promote new products.
- To relaunch products that haven't been advertised for a long time.
- To speed up the learning process when the algorithm lacks data.
If these situations don't apply to you, it's usually best not to use this feature.
How Does It Work?
- Controls Spending: It helps manage your ad spend but don't confuse it with Average Daily Budget.
- Multiplier Factor: The further your spending is from the minimum daily spend, the bigger the bid multiplier, capped at 1.2. This means bids can increase by up to 20%, potentially ignoring the ACOS target.
- Adjustments: If your strategy doesn't meet the minimum spend, consider increasing the ACOS target.
Benefits of Minimum Daily Spend
When your ad strategy is struggling, it’s often due to insufficient data for the algorithm to evaluate your conversion rate. Setting a Minimum Daily Spend helps "boost" your advertising efforts by ensuring a consistent level of spending.
How to Set Up Minimum Daily Spend
- Navigate to Strategies > Sponsored Products.
- Select Your Strategy
- Click on Advanced Settings > "Add Target Min Daily Spend."
- Enter Amount: Enter the minimum amount you are willing to spend daily.
If you have focus Strategies created, you find the option here:
Recommended Amounts
We suggest setting the Minimum Daily Spend between $5 and $20. If you notice large spending variations, adjust the minimum spend accordingly.
Remember:
Advertising works best for products that are "Amazon-ready." Ensure your product detail page is high-quality, your pricing is competitive, and your delivery is fast.