Ways to Lower the Amazon ACOS

With amazon’s advertising topping over `10 billion in 2018, right behind it was google and facebook, the analysts were correct that with big brand advertising was a major influx in the brands. Why is this important? Well, more advertisers, more demand, higher CPC.  If this increases, it does increase the Acos, the advertising costs of sale, and with more ad dollars being allocated, lowering this in spite of the demand is a big task, which is why you should look for these ways to lower the cost of it.

Negative keywords are the first thing to look for, and they will keep the ACoS low on these platforms since it controls what to not search for, and improves the profitability and focusing on what ad is spent and what terms will convert and increase sales.  Looking for negative keywords before, and finding the terms that aren’t relevant are important. An auto-targeting campaign and a manual targeting one with broader phrase match keywords and negatives are what you need to do first, and once there’s enough, query report and look for the ones with clicks, but no orders, and from there, you can look to figure out why they aren’t converting.

Next, isolate the search terms.  These are all in “buckets” and they’re often yielding a wealth of off-topic items that don’t’ work, so you may have issues with the broadness of a keyword, and it might show to the wrong people. Look at your reports, read them, and start to convert the keywords to specific campaigns and the exact match keyword, and negate the converting search term from other campaigns to control this.

Finally, make sure that you use effective bid management. amazon’s advertising platform only allows for bids to be controlled by exact match keywords, with the phrase and broad keyword matches being a bucket of terms, and it can limit the ability to control the CPC. So, if there are low ad sales and high ad spend, bid down the keywords. If there is a conversion height, but low impressions, increase the bid to get more traffic. If there are high clicks but low conversions and sales, check the price and detail page to make sure it’s working with competitors. If there are high impressions but low clicks, optimize the image and titles to get a better CTR.  With all of this, you can work to automatically change this, and from there, you can get more people to look at your items, which in turn helps to build conversions.

With Amazon, you want to be a competitive force, and one way to be a truly competitive part of this is to, of course, make sure that you’re providing something that people are willing to invest in and work with. Being able to control the Acos will allow for you to get the best results from this, and you can adjust your bids so you’re getting the conversions you feel are needed too.