How ACOS can limit your growth.
I see many people on the Amazon Facebook group post screenshots of their PPC campaigns with low ACOs and I can never get anything as low as their 2% or $% or even 10%.
Any tips to help me lower my campaigns ACOS?
I believe that ACOS is limiting most seller’s growth. what I mean by this is that most people keep a close eye on their campaign acos, and that is very deceiving.
The campaign’s acos is the average advertising cost of sales of ALL your keywords in that campaign. But people forget that advertising will get you paid sales and organic sales growth.
By turning on a PPC campaign with the word “Bluetooth speaker” you will be paying to show up on the first page for that search term, but everytime someone clicks on your listing and buys your speaker, your relevancy score for that keyword will increase, therefore giving you more organic reach.
Amazon’s algorithm works just like all any social media platform’s algorithms.
They get excited with engagement.
The more engagement a post on Facebook or Instagram gets, the more exposure your next post will get.
The same happens with Amazon. You want to sell your Bluetooth speakers and use that has a keyword on your listing.
Every time someone finds your listing by searching for that term and then buys that item, they are generating engagement with your listing through that keyword.
So, the next time someone searches for B speaker, instead of being on page 36, you could be on page 35.
And sales generated from a search that triggers your PPC campaign for a specific keyword will count as engagement (I’m using air brackets for the word engagement)
Engagement with a keyword (ie a purchase) is the number one way to increase relevancy.
There are other ways, like the add to cart, and then add to list, and I believe that even adding questions could be a factor (still testing)
SO, your acos could be higher than the ones you see, but if you divide all the daily sales organic and paid, by the daily Ad costs you will get a better view of how much you are profiting.
A couple more things…
Those screenshots could be by someone that has spent $2 in PPC and received 1 sale. It’s not always enough statistical data to show real acos. Or even someone that is trying to sell you on a PPC management service.
Answering your question:
Open your campaign (I’m guessing you have manual campaigns) and go to the page that shows you the acos per each keyword.
Hopefully, you have enough data here to show you what keywords are eating your money and what keywords have the lowes acos.
Some keywords with lower relevancy will cost you more and at the same time, those are probably the ones that have the highest bidders anyway.
Sometimes when I see keywords that are too competitive, I remove them from my campaigns so I can focus on easier to rank keywords (like longtail keywords) (explain Longtail)
And after I rank for the easier ones, I can use that momentum to target the highly competitive ones and even some 1-word ones.
Another way to do this ( a bit more complicated for those who haven’t advertised outside of Amazon) is to get external traffic from Google, FB or Instagram and get this traffic to land on your Amazon store as if they searched for that keyword.Quin Amorim, Host of Amazon FBA Selling Online Podcast