How to Improve ACoS for Amazon Advertising Campaigns?

    Setting an Amazon campaign is easy, running that Amazon campaign is easier, but what is hard is getting better Advertising Cost of Sale (ACoS) every time you optimize it!

    Most Sellers run their Ads without knowing proper optimizing techniques on “How to reduce ACoS on Amazon “and end up losing more than gaining.

    Don’t be that seller! 

    You don’t want to regret all the money you spent on Ads by seeing your Amazon advertising reports and seeing a high advertising cost of sale!

    So, buckle up, this blog on “How to decrease ACoS on amazon” is all you need to understand the major points to focus on.

    WHY IS MAINTAINING LOW ACoS IMPORTANT?

    ACoS matters simply because it is telling you whether you are making profits from your Amazon Advertising Campaigns or losing. Your Advertising cost of sales will tell you the average percentage of each sale that you pay towards advertising to make that sale.

    ACoS = 100 ([total ad spend] ÷ [total sales] )

    A high ACoS simply means that your campaigns aren’t optimized properly and there is a problem with your campaign structure.

    A low ACoS is a good ACoS and that’s what you should aim for having!

    The lower your ACoS, the less you are spending on your advertising campaigns. If you are making a loss by advertising your products then you should stop advertising until your ACoS is at a break-even point or below.

    Some scenarios where high ACoS won’t matter-  

    • If you are looking to clear your old stock
    • If you are running ads to promote your product
    • If you are running Ads to spread brand awareness

    Provided that you have got big pockets to support your growth, it may make sense to advertise at a higher cost!

    HOW TO REDUCE ACoS ON AMAZON?

    To make your advertising journey beautiful, your Advertising cost of sale should below!

    Every seller has a different strategy for lowering ACoS of their campaigns, strategies and ways of optimization depend from product to product.

    Here are some ways which would help you reduce ACoS on Amazon –

    1. Effective bid management

    Setting your bids high definitely gives your brand more audience visibility but it may result in higher ACoS. If you keep your bids low, then your product won’t reach out to many audiences. Both cases are not good!

    To know the safe bids, you need to try and test your CPC bids and mould your advertising strategy accordingly. You never know what will work out the best for you at first, but once you try and test your CPC bids and find out the most effective bid you should run your ads for, your campaign performance will start improving.

    2. Keyword Optimization

    Selecting the right match type and optimizing them accordingly is very important to keep your advertising the cost of sales low. Whenever you add a new keyword, always keep it to “Broad phase” so that you can discover all the search terms from the advertising reports. After doing so, take the most searched keyword and add it as exact or phrase.

    Select the suggested bids in starting until you get confident enough about your keyword getting exactly searched.

    3. Product Listing Optimization

    Optimizing your product listings includes-

    • Optimizing Product Title and Description-

    Title of your product can be considered the most important part of your Amazon product listing optimization because it is what mainly attracts the customers.

    Make sure you put every tiny detail in your title from its colour and quantity to size and its USP.The bullet points which describe your Amazon products are what make a sale for you. Try to make it as attractive as you could, stating all the benefits and advantages of your product offers. Your Product description should be very concise and clear with a good mix of keywords in it.

    • Selecting High-quality Product image –
      Make sure you get professional photos done for your Amazon product listing as high-quality image is very important. Ensure that you have a white background product imagery is large enough to enable zoom. 
    • Encouraging Product reviews and ratings-

    Considering that most of the people rely on customer reviews, it is very important to encourage people for rating your products and leaving Amazon product reviews for your product.

    4. Recruit Amazon Influencers To Reduce ACoS On Amazon

    Did you know that Amazon influencers are responsible for 32% of Amazon’s traffic today?

    Amazon Associates Program is the world’s largest affiliate program. Full of bloggers, social marketers and Youtubers who can influence people by their review and ratings.

    They have audiences that visit their sites, videos, blogs & more RIGHT BEFORE they are ready to make a purchase.  They go to their blogs, get the information they need and then go to Amazon and make a purchase. Getting their good reviews would definitely have a good impact on your conversion rate and hence ACoS.

    5. Isolate your search terms

    Broad and Phrase keywords act as “buckets” of search terms as they yield thousands of results for off-topic items.

     Follow these steps to make sure your search terms are isolated properly-

    • Try to look at your search term reports daily or once in two days
    • After extracting keywords from the report, change the broad and phrase match types to exact.
    • Make sure you add negative keywords to every ad group that you create.

    BONUS TIP-Reduce ACoS on Amazon with Product Explainer Videos as having an Explainer Video changes the game.

    You CAN reduce ACoS on Amazon if you follow all the above-mentioned points. Having great products and low conversion rates can be stressful.

    Hence, be smart enough and dominate your competitors!