How to Reduce ACoS on Amazon PPC: Step-by-Step Guide -OnpointAMZ

Running Amazon PPC campaigns can boost your sales, but if your Advertising Cost of Sales (ACoS) is too high, it can cut into your profits. Reducing ACoS doesn’t mean sacrificing visibility—it’s about making your campaigns more efficient. Below is a step-by-step guide to help you lower your ACoS effectively.

1. Audit Your Campaign Performance

Before making changes, review your campaigns to understand which areas need improvement.

  • Analyze Metrics: Focus on CTR (Click-Through Rate), CVR (Conversion Rate), and high ACoS keywords.
  • Identify Problem Areas: Look for keywords or ads with high spend and low returns.

2. Optimize Keyword Targeting

  • Pause Low-Performing Keywords: Use the search term report to pause keywords with high spend but low or no conversions.
  • Focus on High-Converting Keywords: Allocate more budget to keywords with strong conversion rates and low ACoS.
  • Use Negative Keywords: Add irrelevant or non-converting search terms as negative keywords to avoid wasted spend.

3. Adjust Your Bidding Strategy

  • Lower Bids for High ACoS Keywords: Gradually reduce bids for keywords with high ACoS while maintaining impressions.
  • Increase Bids for High-Performing Keywords: Boost bids for keywords that generate consistent sales at a low ACoS.
  • Use Dynamic Bidding: Enable “down-only” bidding to automatically lower bids when conversion likelihood is low.

4. Refine Ad Placements

Placement reports can help you identify where your ads perform best.

  • Adjust Placement Modifiers: Increase bids for top-performing placements, such as “Top of Search,” if they deliver better returns.
  • Reduce Low-Performing Placements: Lower bids for placements with high spend and low conversion rates.

5. Segment Campaigns by Match Type

  • Use Broad Match for Discovery: Gather new keywords using broad match campaigns but keep budgets controlled.
  • Focus on Exact Match for Conversions: Use exact match campaigns to target high-intent keywords with proven results.
  • Separate Match Types: Create separate campaigns for broad, phrase, and exact matches for better control.

6. Leverage Automatic Campaigns

  • Gather Data: Run automatic campaigns to discover new keywords and ASIN targets.
  • Refine Manual Campaigns: Use high-performing keywords and targets from auto campaigns in your manual campaigns.

7. Optimize Your Product Listings

A strong product listing improves conversions, which reduces ACoS.

  • Enhance Product Images: Use clear, high-quality images that highlight your product’s features.
  • Write Compelling Content: Optimize titles, bullet points, and descriptions with relevant keywords and persuasive language.
  • Add A+ Content: If eligible, use Enhanced Brand Content (A+ Content) to showcase your product with additional visuals and storytelling.

8. Use Negative Targeting for ASINs

In Product Targeting campaigns, exclude ASINs that don’t convert or lead to high ACoS. Focus on targeting competitors with lower reviews or higher prices.

9. Target Long-Tail Keywords

  • Lower CPC: Long-tail keywords often have lower competition and cost-per-click.
  • Higher Intent: These keywords usually target shoppers closer to making a purchase decision, improving conversions.

10. Monitor and Optimize Regularly

  • Review Weekly: Analyze your campaigns weekly to make informed adjustments.
  • Test and Scale: Experiment with new keywords or bidding strategies, but scale only what works.
  • Track Seasonality: Adjust campaigns during peak seasons to avoid overspending when competition increases.

Final Thoughts

Reducing ACoS on Amazon PPC is about refining your strategy and focusing on efficiency. By optimizing keywords, bids, placements, and product listings, you can drive better results while controlling costs. Remember, consistent monitoring and data-driven decisions are key to long-term success.

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