Key Takeaways
- Amazon PPC service can significantly improve your ACoS (Advertising Cost of Sale) and increase your ROI.
- A professional PPC manager has the expertise to optimize your campaigns and reduce wasted ad spend.
- By refining targeting, keyword selection, and bidding strategies, a PPC manager can help you achieve a healthier ACoS.
Introduction: The ACoS Dilemma
As an Amazon seller, one of your main goals is to ensure your ACoS (Advertising Cost of Sale) is healthy and sustainable. A low ACoS means you’re getting a better return on investment (ROI) from your PPC campaigns, which translates to more sales at a lower cost.
But what if your ACoS is too high? Or even worse, if it’s too low, resulting in missed opportunities for growth? Can a PPC manager fix this? The short answer is yes — with the right strategies, a professional Amazon PPC service can significantly improve your ACoS, making your campaigns more efficient and profitable.
In this blog, we’ll explore how a PPC manager can help fix your low ACoS and optimize your campaigns for better performance.
1. Understanding ACoS and Why It Matters
Before diving into how a PPC manager can help, it’s important to understand ACoS. ACoS is a metric that tells you how much you spent on ads to generate a specific amount of sales. It’s calculated using the formula:
ACoS = (Ad Spend ÷ Sales) × 100
A low ACoS means you're spending less on ads to generate more sales, which is ideal. However, a low ACoS could also indicate that your campaign is too conservative, potentially limiting your reach and sales opportunities.
Table: ACoS and Campaign Efficiency
ACoS | What It Indicates | Action to Take |
High ACoS (Above 30%) | Too much money is being spent on ads for the sales generated | Optimize bids, reduce unnecessary keywords, and refine targeting. |
Low ACoS (Below 10%) | Limited ad spend could be restricting sales opportunities | Increase budget or expand keywords to capture more high-intent traffic. |
Ideal ACoS (15–25%) | A healthy balance between ad spend and sales | Maintain and continuously optimize for this range. |
2. How a PPC Manager Fixes Low ACoS
A PPC manager can significantly improve your low ACoS by refining various aspects of your campaigns. Here's how:
2.1. Targeting the Right Keywords
One of the most common causes of a low ACoS is poor keyword targeting. If you’re targeting irrelevant or overly broad keywords, you’re wasting ad spend on clicks that won’t convert. A PPC manager will:
- Perform detailed keyword research to find high-converting, low-competition keywords.
- Refine keyword targeting using manual or automatic campaign adjustments.
- Utilize negative keywords to filter out irrelevant traffic.
2.2. Adjusting Bidding Strategies
A low ACoS may occur if your bids are too low, limiting the visibility of your ads. However, it’s also possible to waste money with too-high bids. A PPC manager can:
- Adjust bids to ensure that you're not overpaying for clicks.
- Use dynamic bidding strategies to increase bids when a conversion is more likely and lower them when it’s not.
- Test different bid amounts to find the sweet spot for maximum efficiency.
2.3. Optimizing Product Listings and Ads
Even the best-targeted keywords and bidding strategies won’t help if your product listings are subpar. A PPC manager will:
- Optimize product listings (titles, bullet points, images) to improve conversions.
- A/B test different ad copies to find the most compelling one.
- Ensure listings meet Amazon’s best practices for better visibility and customer engagement.
3. The Role of A/B Testing and Continuous Optimization
A professional PPC manager doesn’t just set up campaigns and forget about them. Continuous optimization is key to improving your ACoS. Here’s how:
- A/B testing different ads, keywords, and targeting strategies allows you to identify the best-performing combinations.
- Monitoring key performance metrics such as CTR (Click-Through Rate), conversion rate, and ACoS allows for real-time adjustments.
- Ad budget optimization ensures you're allocating funds to the highest-performing campaigns.
Table: Common PPC Metrics and Their Importance
Metric | Why It Matters | What to Adjust |
ACoS | Measures the cost-effectiveness of your campaigns | Optimize bids, refine keyword targeting, or increase ad spend on profitable campaigns |
CTR (Click-Through Rate) | Indicates ad relevance and appeal | A/B test ad copy or adjust targeting to improve CTR |
Conversion Rate | Shows how well clicks are turning into sales | Optimize product listings and landing pages to increase conversions |
4. The Benefits of Using an Amazon PPC Service
Hiring a professional Amazon PPC service to manage your campaigns can help save time and maximize your advertising efficiency. Here’s why it’s worth it:
Benefit | DIY Management | Amazon PPC Service |
Time Investment | High – you need to monitor and adjust manually | Low – agency manages everything for you |
Expertise | Limited knowledge and experience | In-depth knowledge of Amazon’s PPC system |
Optimization | Limited by your resources | Continuous monitoring, testing, and adjustments |
Scalability | Harder to scale as your business grows | Easier to scale campaigns effectively |
Ad Spend Efficiency | May waste money on irrelevant traffic | Highly efficient with focused targeting and optimization |
5. Final Thoughts: Let a PPC Manager Fix Your ACoS
If your ACoS is low and you’re unsure how to improve it, a professional Amazon PPC service can make all the difference. With the right expertise, a PPC manager can optimize your campaigns, improve targeting, refine bids, and ultimately lower your ACoS, helping you get more out of your ad spend.
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