Running Amazon PPC campaigns can feel like walking a tightrope. On one side, you want maximum visibility. On the other, you need to keep costs under control. The key to balancing both is lowering your ACoS without sacrificing sales.
In this guide, you’ll learn actionable strategies to reduce ACoS, boost profitability, and keep your Amazon business growing strong.
What Is ACoS and Why Does It Matter?
ACoS stands for Advertising Cost of Sales. It is the percentage of your sales revenue that goes toward advertising.
- Formula: ACoS = (Ad Spend ÷ Sales) × 100
- Example: If you spend $50 on ads and make $200 in sales, your ACoS is 25 percent.
A high ACoS eats into profits, while a healthy ACoS ensures your campaigns are both effective and profitable.
Common Mistakes That Increase ACoS
Before we fix ACoS, let’s address the traps many sellers fall into:
- Targeting broad, expensive keywords without testing
- Ignoring negative keywords
- Failing to monitor bids daily
- Running campaigns without optimizing listings for conversions
- Relying on automatic campaigns alone
Sound familiar? You are not alone, and the good news is these issues are fixable.
Step 1: Focus on Keyword Relevance
Keywords can make or break your PPC campaigns. Using irrelevant or overly broad keywords can drain your budget fast.
- Use exact and phrase match types to target buyers closer to conversion.
- Build keyword lists from competitor analysis using tools like Helium 10 or Ahrefs.
- Regularly update your campaigns with new high-performing long-tail keywords.
For a keyword strategy tailored to your product, check out our Amazon SEO Listing Optimization Services.
Step 2: Master Bid Optimization
Bidding is the heart of PPC efficiency. High bids can get you clicks, but if those clicks don’t convert, you lose money.
- Lower bids on high ACoS keywords.
- Raise bids on keywords with strong conversion rates.
- Use dayparting (ads running at peak shopping hours) to stretch your budget further.
Step 3: Use Negative Keywords to Stop Wasting Spend
Adding negative keywords prevents your ads from showing up for irrelevant searches. This reduces wasted clicks and lowers your ACoS instantly.
For example, if you sell “organic dog shampoo,” add “free,” “cheap,” or “DIY” as negative keywords to filter out unqualified buyers.
Step 4: Optimize Your Product Listings
Even the best PPC campaign will struggle if your product page doesn’t convert.
- Write keyword-rich titles and bullet points
- Add lifestyle images and infographics
- Use A+ Content to increase buyer confidence
- Ensure mobile optimization for shoppers on the go
Pair PPC with stunning visuals from our Amazon A+ Content Design Services for higher conversion rates.
Step 5: Track, Test, and Adjust Regularly
Amazon PPC is not a set-it-and-forget-it system. Monitor your campaigns weekly to identify what’s working and what’s draining your budget.
- Use Amazon’s Campaign Manager to track CTR, conversions, and ACoS
- Split test headlines and images to see what converts best
- Refine bids and keywords monthly for continuous improvement
Bonus Tip: Combine PPC with SEO for Maximum Impact
When your PPC campaigns bring in traffic and your SEO ensures listings are optimized, you create a winning loop that drives both organic and paid growth.
Boost results by combining our Amazon PPC Management Services with SEO optimization.
Final Thoughts
Lowering your ACoS is about strategy, not slashing spend. By focusing on keyword relevance, smart bidding, negative keywords, and optimized listings, you can achieve profitable growth while keeping costs in check.
Want to see faster results with professional support?
Start today with our Amazon PPC Management Services.
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