MACS stands for your Max Advertising Cost Per Sale. Setting MACS in Flywheel turns on bid automation. meaning Flywheel will automatically calculate your bids and publish directly to Amazon.
What is MACS?
MACS is a user defined input in Flywheel used to communicate with our bidder spend thresholds. In theory, it indicates the percentage of sales you are willing to spend to try and earn a sale.
For instance, if your product sells for $10, you set your MACS to 10%, then you are indicating to our algorithm that you are willing to spend up to $1 per click.
How do MACS work?
MACS are set at the campaign and ad group level based on your product advertising goals and product margins. Our bidding algorithm will factor in the potential payoff, conversion rate, and MACS to calculate bids at the keyword and ad group level.
The MACS input helps our bidding algorithm calculate your optimal bid. It dictates to the bidder your willingness to spend. The lower you set your MACS, the algorithm will bid more conservatively. The higher you set your MACS, the algorithm with bid more aggressively.
For example, let’s say you're taking a road trip across the country and you have the option to take the scenic route or the direct route. The scenic route is a slower, more cautious ride, whereas the direct route gets you to your destination faster.
This is similar to how MACS work. If your goal is profitability, set a lower MACS. This indicates that the amount that you’re willing to spend on bids is low and bid changes will occur in smaller increments. If your goal is to launch a product, set a higher MACS. This indicated that you’re willing to spend more on bids and you’ll generate more clicks faster.
MACS = Your Willingness to Spend
Now that you know what MACS are, let's learn how to set them based on your goals.
Next: How to Set MACS: The Basics