How Do I Reduce My Amazon PPC ACoS? Part 1
Updated: Jul 7
Image by Frauke Riether
Where is the Flow of Money Going?
One of the most common mistakes I see [even among PPC managers] is to not channel money to better-performing ad campaigns.
I usually see something like this [taken from a real example]:
Data - Last 30-days
Campaign Name - $10 budget - 12 orders - ACoS 20%
Campaign Name - $20 budget - 1 order - ACoS 97%
If you look at the above you will notice that this seller is saying to Amazon please spend twice as much money on the bad campaign than on the good.
Many sellers are likely channeling cash into feeding poor-performance campaigns. So, when you are next looking at your ad campaigns look first at the last 30 days of data and see where your money is going.
The above campaigns should look more like this:
Data - Last 30-days
Campaign Name - $100 budget - 12 orders - ACoS 20%
Campaign Name - $3 budget - 1 order - ACoS 97%
Here you can see that the lion's share of the money is being made available to the better campaign, while the other is being squeezed of cash. It should remain this way until the poor performer begins to improve via bid management - then you give it more money.
Before you make any changes, just cast an eye over different data ranges to get a sense of performance fluctuations. Is a bad campaign regularly bad? Has it got better recently through bid optimisation? Is it heading in the right direction? What has happened in the last 7 days? And so on.
Then make a judgment...
...which campaigns are contributing the best to your overall goals? Which is costing you the most but delivering the least? Which campaigns are giving you 80% of results for 20% of the money - and so on?
There will be a story here - it will have some heroes and some villains, and how they are spending your cash will determine whether you experience a happy ending or not.
Once you have assessed this, channel your money where the results are going. And restrict your cash from those that aren't contributing well enough. This is a simple way of looking at things. There can be a poor use of negative keywords, poor keyword targeting, and many other reasons for a campaign to waste money, however, you still need to channel the flow of your cash in the right way while making changes at a granular level. And that's what we will look at next - negative keywords, what are yours like, are they helping or hindering your progress? Need help running your campaigns?
If you can't stand the stress of managing them anymore, or you simply wish you could get on and focus on what you love about your Amazon work, feel free to get in touch at heath AT amazonalchemist.com. I might be able to help.
If you want to do things yourself but need to understand PPC more then I have a number of courses available: CLICK HERE it will open in a new tab - then click the course image that interests you for a free lesson and further details.