One of the most important actions you will need to take in Flywheel is setting your MACS. It is critical to how our algorithm works and impacts your spend. You have the ability to set MACS at the campaign or ad group level.
How to determine your starting MACS
To set MACS you must know what your goals are for the products within the campaign, as well as your gross margin.
1. Determining your goals (objectives):
Next, ask yourself, what are you trying to achieve?
Grow sales = Discovery, launch, growth
Improve efficiency = Target profitability
Learn more about advertising goals.
2. Determining your Gross Margin:
Knowing your gross margin will give you an idea of how much money you have to spend on advertising after factoring in the cost of selling your product. Use the equation below to calculate your margins for each product or upload your COGs to Flywheel and we will automatically calculate this for you.
3. Setting your MACS:
Goals (objectives) and margins work together to help determine the ideal starting MACS. For example, if you are launching a new product and want to grow sales, you want to exceed your current gross margin to gain traction on your product offering.
Goal: Launch → Increase Sales → Higher MACS
Goal: Profit → Reduce Spend → Lower MACS
Check out this chart to understand the relationship between goals, margins and MACS. Factor in your category competition to determine where your business falls on the range. This is just a guide. Learn more here: Setting MACS: Deep Dive
Important: Always consider your current campaign performance when setting and adjusting your MACS and avoid setting a MACS that is more than 10% lower than your current ACoS.
Before turning on bid automation, confirm in Seller/Vendor central that your bidding strategy is set to 'Dynamic Bids - Down Only' and 'adjust bids by placement' is set to 0%.
For Sponsored Brands campaigns you can leave "Automated Bidding" on for keyword targeting.
Which Amazon bidding strategy should I use?: Dynamic Bids - Down Only works best!
Evaluate Performance every 1-2 weeks: When to make changes to MACS
MACS Calculator: Using the MACS Calculator
Learn how to apply this information to your Business: Setting MACS: Deep Dive
Next: How to set MACS in the Flywheel Software