Basics: Before you get started with Ad Optimizer

Basics: Before you get started with Ad Optimizer

Before you create campaigns in Ad Optimizer, you will need to make several decisions: 

For which products do you want to generate campaigns?

We recommend onboarding products which are advertising-ready, meaning products which:

  • have good customer reviews  (min. 20 reviews and 3.5 stars)
  • do not have too low prices (e.g. no prices below 5 EUR/USD/GBP)
  • have good organic visibility and bestseller rank
  • have good content (e.g. min. 4 images, product title, bullet points, A+ content)

Note: Whenever you are not the buy box owner, your Sponsored Products will not be displayed by Amazon. For Sponsored Brands and Sponsored Display, the products need to be available (independent of buy box owner). 

How many campaigns do you want to create?

The number of campaigns that can be created should depend on the budget you want to spend. We calculate with approximately 10 EUR/USD/GBP per ASIN per day in order to determine the minimum budget needed. Of course, it is possible to add further campaigns successively after the initial setup, in case the budget cannot be spent.

Note: deviations might exist – there are products which could be advertised with much higher budget per day, and others, for which the search traffic is too low to spend such an amount. This is just a rule of thumb. 

How much budget do you want to spend?

  • For our algorithm to work properly, we calculate with a minimum budget of 5 EUR/USD/GBP per campaign per day 
  • Budget period: there is no minimum budget period, however we recommend setting monthly budget periods

Note: the budget is used as media budget for the campaigns and does not include the metoda fee. You will receive two invoices: one from Amazon for the campaigns' costs and one from metoda for the Ad Optimizer fee.

Which Target ACoS (TACoS) do you want to set?

The advertising cost of sales (ACoS) is calculated by dividing total spend by the attributed sales.

It is important to set realistic TACoS values for all your campaigns. In order to determine it, you could:

  • Check the actual ACoS values of your previous campaigns as an indication and add at least 5 percentage points to these amounts
  • If those are not available, we recommend starting with at least 15% - 20%

TACoS values can be adjusted at any time. We recommend rather starting with TACoS values above your real targets in order to give our algorithm room for development and optimization and decrease them after 4-6 weeks. 

Of course, you can also set TACoS values above 100%, in case you want to boost visibility of new product launches or attack competitors.