u/Real-Respect-8263

This type of ads campaigns are designed to automatically search potential customers through  search, display та video placements on АMZ.

What sets it apart from a typical auto ads campaign?

It promises to find potential customers before they even start to search for a particular product - and convert them on the final stage.
Main goal - Long-Term Sales, not an acceptable short-term ROAS.
Budget - minimum $200 per day or $6000 per month. Moreover, results that can be measured will only be visible for a period of 60 to 90 days, as they promise.
So, you need to spend at least  $12 000.

Is it worth it?

In theory, the audience needs to make a purchase decision with a few touches.
 
Practically

▪ It's expensive to warm up a completely cold audience
▪ Even with traditional ad tools we are able to engage new audience with a more predictable ROAS and more controllable costs 
▪ On the eve of Q4, it makes more sense to invest these $12k in scaling up existing approaches or Google/Meta Ads, if you have someone who knows how to finetune the hidden manual settings and get the most out of them.

 
Well, if you just love trying out everything new, what's a measly pile of money to you?)

"Advertisement cost is a loss. You must focus on returning investments with organic traffic."
"If we lower ACOS, we will lose traffic."
Do these statements sound familiar?

Perhaps you work according to these principles year after year. You're balancing slightly above zero. Some funds trickle in. But they’re not significant.
The following questions arise: "Do you really want to be in the business? Is it worth it?”

I'll say it right away: yes, there are some highly competitive niches where you have to work at a loss for a long time to gain market share.

However, it is worth taking a different approach.

1. Listing optimization in order to boost and maximize conversions. It will also help boost organic traffic.
2. ACOS optimization — to achieve the lowest possible cost with the highest conversion rate.
3. Do not dump unless it is absolutely necessary. If we can increase turnover and profit at the current price, then we should consider doing so.

If you're aiming to expand your market share and surpass your competitors, consider the following strategies:

• It is essential to have a clear understanding of your goals. You must see positive dynamics in both revenue and profit.
• Analyze the unit economics and determine what ACOS/discounts at what turnover growth will be financially justified for which period, and only then implement it.
• Don’t lower prices immediately. Stormy dumping is detrimental in the long term. It encourages competitors to engage in dumping as well, leading to an extremely unhealthy situation in the niche. Do not apply maximum sales and coupons to everything in your inventory. Don't exceed reasonable ACOS limits.

After all, Amazon shouldn't be the only one making money on Amazon)