• Removing the frequency cap because more impressions always lead to more conversions
• Setting the frequency cap to maximize reach
• Setting the frequency cap to maximize purchase rate while limiting waste or over delivery

The correct answer is: Setting the frequency cap to maximize purchase rate while limiting waste or over delivery

Explanation: When analyzing the relationship between frequency and purchase rate, the actionable insight for campaign optimization is to set the frequency cap to maximize purchase rate while limiting waste or over delivery.

The optimal frequency analysis methodology in AMC is designed to help you find the frequency bucket where returns begin to diminish, indicating that serving more impressions beyond this point drives up cost but not conversions.

By setting frequency caps based on this analysis, you prevent audience fatigue and wasted ad spend while ensuring you’re maximizing sales/purchase rate at the most efficient exposure level.

Reference content: From Amazon’s official frequency analysis playbook

“Finding a cap where the increased frequency is causing diminishing returns in brand value (or an ad fatigue) will help reduce media spend waste.”

“The optimal frequency finding can be utilized in media flights by audience creation, bid optimization, and frequency capping.”

“Set frequency caps … The recommended frequency cap would be the last percentage change value above zero. In this case, we would set our daily frequency cap to 4.”