A target CPC, or cost per click, is the CPC you are aiming for to reach your target ACoS. If your current CPC is less than your target CPC, then you will want to raise your bid to hit your target ACoS. Likewise, if your current CPC is greater than your target CPC, then you will want to lower your bid to hit your target ACoS.
Your target cost per click is calculated by first figuring out your revenue per click. This can be calculated by multiplying your conversion rate by your average order value.
Once you have your revenue per click, you want to multiply that by your target ACoS.
As an example, if you have a 10% conversion rate and a $19 average order value, then your revenue per click will be $1.90 (multiplying your $19 average order value by your 10% conversion rate = $19 * 0.10 = $1.90).
If you have a 19% target ACoS and you know your revenue per click is $1.90, then you will multiply those together to get your target CPC. In this case that would be $0.36 ($1.90 revenue per click * 0.19 target ACoS).
The short answer - as much as possible. The more frequently you update your bids based on your target CPC, the closer your average ACoS will be to your target ACoS.
But, doing this manually with Amazon's bulk operations is tedious and time consuming. That's where Merch Jar's Smart Bid algorithm comes in! With a single click, you can enable Smart Bids on any campaign to automatically adjust your bids based on your target ACoS. When Smart Bids are enabled, Merch Jar will automatically adjust your bids daily.
Sleep easy knowing your bids are being managed correctly, whether you have 100, 1,000 or 1,000,000 keywords and targets - Merch Jar has you covered!