Improve your Advertising Cost of Sales (ACoS) by optimizing your campaigns
Improving your Advertising Cost of Sales (ACoS) is a key way to ensure your Amazon advertising campaigns deliver sales at the right cost for your business.
Consider the following strategies to help improve your ACoS for Headline Search Ads and Sponsored Products with Manual Targeting campaigns:
1. Lower bids on keywords with high ACoS
Identify keywords with high ACoS and lower your bids to just below the average cost per click. This drops the maximum amount you’ll pay for a click while still driving traffic with these keywords.
2. Optimize keywords and match type
If your broad match keywords are driving up your ACoS, add them with a phrase and exact match to drive more precise but highly relevant traffic. Consider pausing keywords that continue to receive a high number of clicks but low sales, or keywords you don’t want to be associated with your brand. You can also add them as negative keywords to your manual Sponsored Products campaigns to minimize irrelevant traffic to your ads.
3. Increase bids on high-performing keywords
In the Keywords tab, sort by sales to identify keywords that are driving sales and also meeting your ACoS goals.Raise your bids on these successful keywords and add them as broad match to target additional qualified traffic. Also, consider if there are additional similar keywords you can add to your campaigns.
4. Set up ad groups by ACoS goal
Products that have a higher margin may be able to sustain a higher ACoS, while lower margin products may have stricter ACoS targets. Consider placing products that have similar ACoS objectives in the same ad group to allow you to fine-tune your advertising.
5. Enhance product detail pages
Compelling product detail pages will help customers learn about your products once they have clicked on your ad and will encourage them to make a purchase. To optimize your product detail pages, include high-quality images that give customers a clear understanding of your item. Also ensure you have a tailored product title, bullet points, and description that draw attention to exciting and compelling product features.
6. Test more compelling headlines and images
Consider testing different headlines and images in your Headline Search Ads to see which drive the most relevant traffic and lead to sales. Run a test by setting up 2 identical campaigns and changing the headline or custom image. Try incorporating calls to action, top performing keywords, and other compelling languages into your headlines, as well as a variety of product images in different orders, to see which drive the best results.
What is ACoS?
ACoS is the percentage of your total sales that you spent on advertising, so a lower ACoS means a better return on your ad spend.
What is a good ACoS?
Successful ACoS levels vary for each seller. To determine your target ACoS, consider your margins on each unit sold and what sales you need to make to be profitable. Then log into Campaign Manager every 1 to 2 weeks to review your campaigns. You can quickly identify which campaigns are not meeting goals by sorting the ACoS column.
What if my ACoS still doesn’t meet my target level?
After following our optimization tips above, monitor your ACoS for at least 2 weeks to allow sales and ad performance data to populate in Campaign Manager. In some cases, your ACoS may still not meet your target level, for example, if you’re targeting keywords with a high average cost-per-click (CPC) or those in a very competitive category. If your ACoS hasn’t improved after that time, consider pausing your campaign and reallocating your budget to campaigns that are performing well and are within your target ACoS level.