One of the most important actions you will need to take in Flywheel is setting your Max Ad Cost per Sale or MACS. It is critical to how our algorithms work. You’ll want to make sure your MACS are set in with your goals and margins, otherwise you may end up spending too much or too little on advertising.
Setting Max Ad Cost per Sale
Determining the right target for each campaign
The ‘MACS’ indicates the percentage of sales you are willing to spend on advertising. For instance, if your average sale was $10 and you set your target to 10%, then you are indicating that you are willing to spend up to $1 in ads for every $10 that you make in sales.
The higher your MACS, the more aggressive the bidding algorithm will be, and the more likely you are to increase exposure and generate sales. With a lower MACS, margin is the primary focus, and you may sacrifice sales from more expensive clicks.
When determining your MACS, keep in mind your objectives for that campaign and the margins of the products in it.
**CAUTION: Never set a MACS that is more than 10% lower than the campaign's current ACoS. This can result in lower sales. For example, a campaign that is currently performing at an ACoS of 80%, for the most part, should not have a MACS lower than 72%, regardless of margin and objective. Evaluate MACS every 2-4 weeks and change them according to performance.**
Use the following suggested MACS to set your own, keeping the above warning in mind:
How to set MACS
Before setting MACS for Sponsored Products, make sure your campaign margins follow best practices:
- Check the "Pre-ad product gross margin range". If the range is greater than 10 points, consider breaking up the products into separate campaigns
- If the range is not too broad, use the "avg. pre-ad margin" to set your MACS accurately
Setting MACS in in Flywheel is simple. Enter your desired target and click Save Settings. Once a target is attached to a campaign, it makes it eligible for bid automation--which means the software will make daily bid changes to ad groups and keywords within that campaign. If you have set your MACS correctly, there is nothing else you need to do around bid changes (yes, it’s true!), but you can review your bid changes at any time under Change History.
Enter your desired MACS and hit Save Settings:
Review bid changes at any time under the Change History section. You can see what the old bid was, what the new bid is and the reason for the change:
You should review your MACS every 2-4 weeks, making changes where necessary. Only change targets if the objective for a particular campaign has changed or you want to be more/less aggressive.
Next: Bid Automation