Amazon Ads Rule-Based Bidding Optimization – Profitability or Sales

When converting to a rule-based bidding campaign in Amazon ads, depending on your business goals, you can choose to set the target ROAS higher or lower than the current ROAS of the campaign.

Setting a higher target ROAS

If you set a higher target ROAS you are optimizing for ROAS and campaign efficiency.  If the campaign works as expected, ROAS will rise and CPC will drop.  Impressions, sales, and spend will also drop.  This strategy works when you have a limited budget and want to use it as efficiently as possible.

Setting a lower target ROAS

If you set a lower target ROAS, sales, spend, and CPC will rise while ROAS will drop.  This setting maximizes profit.  It’s ideal when you you are tasked with spending as much as possible on Amazon ads as long as it’s profitable.  The key here is knowing your minimum profitable ROAS and setting the floor there.

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