Lowering ACoS (Advertising Cost of Sales) on a mature Amazon PPC campaign requires a combination of strategic adjustments. Here are several effective methods:
- Optimize Keyword Targeting:
- Pause underperforming keywords: Review the search term report and identify keywords with high ACoS but low conversions. Pause them to prevent overspending.
- Refine match types: Use broad match for discovery and narrow down to phrase or exact match for better targeting and more control over bids.
- Negative Keywords: Add negative keywords to eliminate irrelevant or low-converting traffic.
- Adjust Bidding Strategy:
- Lower bids on high ACoS keywords: Reduce bids on keywords that are driving up your ACoS but not converting well.
- Use Dynamic Bidding: Enable dynamic bidding for more control, adjusting your bids based on the likelihood of conversion.
- Use Automatic and Manual Campaigns Together:
- Automatic campaigns for keyword discovery: Let automatic campaigns run to gather data on new keywords.
- Refine manual campaigns: Use the data from automatic campaigns to build a more refined manual campaign by focusing on high-converting keywords.
- Focus on High-Converting Keywords:
- Allocate more budget towards keywords that generate sales efficiently, while reducing spend on underperforming ones.
- Reallocate Budget: Shift budget to best-performing campaigns or keywords.
- Optimize Product Listings:
- Improve Conversion Rate: Enhance product images, titles, and descriptions to improve conversion rates, which can directly impact ACoS.
- A/B Testing: Experiment with A/B testing for product listings to find which changes lead to higher conversions.
- Use Bid Adjustments:
- Adjust bids based on placements (e.g., top of search) to optimize visibility and reduce unnecessary spend.
- Refine Targeting Options:
- Product targeting: Refine targeting on specific ASINs or categories where you see higher conversion rates.
- Dayparting: Schedule your ads to show only during hours that historically convert better, reducing wasted spend.
- Increase Organic Sales:
- Improve Organic Ranking: Focus on improving your organic sales through enhanced listings, SEO, and review generation to reduce reliance on paid ads.
- Regular Campaign Monitoring:
- Consistently monitor campaign performance and adjust based on trends. Set up weekly checks on metrics like CTR, conversion rate, and ACoS to ensure campaigns are optimized continuously.
A consistent, data-driven approach while making these adjustments will help gradually reduce ACoS on a mature campaign.