In this article I guide you through the highs and lows (pun intended) of Amazon advertising optimization strategies, some of which will guarantee that you will have the lowest ACOS out of any of the campaigns you have in your account right now.
Let’s get started!
Get your amazon advertising reports
One of the most important rules you need to know as an Amazon seller when it comes to optimizing your Amazon advertising campaigns is that you need to constantly refine the data that you’re feeding into your manual campaigns.
The easiest way to do that is by downloading your advertisement reports, collecting that data and continually turning out new keywords and product targets to put into your manual campaigns. This way, you can continually grow your sales while keeping your ACOS low.
When you’re downloading the reports, it’s very important that you actually segment the campaigns based on performance.
Go into the performance data right now, and let’s see what exactly you need to segment in order to keep your ACOS low and your campaigns profitable in 2020.
The very first thing you need to do is download your ad reports. What you have to do is click on ‘Report’ in Amazon Seller Central. Leave everything to be the default settings; the only thing you have to change is the report period. If this is your first time downloading your reports, I’d go back 60 days or 30 days.
Go ahead and select the last 30 days, save it, and you can leave everything else the same. Then run the report – so you can now look at all the data in an Excel sheet.
Everything from now on applies to Excel, but you can find similar filters etc. in Google Sheets, too.
One of the fastest ways to begin sorting through all your data is to remove any blank spaces that there are.
So the first thing you’ll do is click on ‘Data,’ then you’ll click on ‘Filter.’ Then, click on ‘Total Advertising Cost of Sales’ (aka. your ACOS). Then scroll to the very bottom where it says ‘blanks,’ and uncheck that for now.
Filter by auto campaign data only
As a next step, you must organize the Excel sheet by auto campaign only. This is because you only want to see placements and keyword targets that are directly from an auto campaign.
Remember: the auto campaign is basically going to be the engine running for you on Amazon, collecting valuable data that you have to extract from the report.
So in Column E in your table, uncheck any campaigns that are not auto campaigns. After those are unchecked, you should only have data that is directly from your auto campaigns.
Just remember that the match type is always going to be broad. That’s Amazon’s default settings for the auto campaign.
The campaign you have to create and the data you must be looking for is:
- high click-through rate (CTR)
- both keyword placements and product targeting placements.
The very first thing you have to do now is organize your data from the highest CTR all the way down to the lowest CTR.
To do that, just click on column L, and notice that there’s a little drop down arrow: Just go ahead and click on ‘Descending.’ That way, it will arrange it for you in a descending order.
Now, what I want you to keep in mind is we’re going to be looking at impressions. So if you only see ‘1’ in your ‘Impressions’ column, for example, it could be a fluke.
1st golden rule for low acos Amazon advertising
A good rule of thumb to keep in mind is when you’re adding click-through rate products and keyword placements into your manual campaigns, make sure that you have at least three impressions for those particular placements.
For example, the one I’m showing you in the video has six impressions and a 100% click-through rate. So this placement is incredibly relevant. In your table, you can see sales in column O, and for this particular campaign, you can see that the ACOS is very low.
2nd golden rule for low acos Amazon advertising
A good rule of thumb is to only add click-through rates above a 30% average.
So if you see that the click-through rate is above 30%, you’ll do even better; because anything below 30% could be a little bit more competitive.
And remember, this particular campaign is about ultra profitable keywords instead of an ultra profitable campaign. In the video, you can see all my campaigns that meet the current tier, they are all above a 30% click through rate. And there’s quite a few products and keywords.
So this creates a mixture of both ASINs and keyword placements that you can add into your manual campaign.
In the video you can also see the sales in column O, and you can see that basically the average ACOS is about a 1% ACOS, which is extremely good.
Then go ahead and copy the keywords that meet these criteria inside of a Google Doc to save them.
The secret to low ACOS Amazon advertising
Now, here’s what makes the high click-through rate campaigns extremely powerful, and what virtually guarantees that they’ll have the lowest ACOS.
Once you’re showing up and the click-through rate is high, that means your product is extremely relevant for that keyword; or your offer is much better than the competitors’ listing that you’re targeting.
Therefore, you’re actually funnelling the sales from your competitors’ listings directly to your listings. That’s extremely powerful, because you can basically guarantee that you’ll have a low ACOS, since the click-through rate is high.
Also, like I just mentioned, when the click-through rate is high, it means your relevance is spot on.
Separate CTRs: Placements for maximum ad impressions
The reason why you’ll want to have these high CTR campaigns separated into their own campaigns and not convoluted with the rest of your manual campaigns is simply because these particular campaigns need to have their own dedicated budget and ad spend.
It’s not going to be a lot of ad spend or a lot of budget, because although the sales might be generally lower than in case of your manual campaigns, you do still want to generate sales, and you still want to also dedicate specific traffic to these campaigns, so that you can show up on these placements as much as possible. The more often you can show up on those placements, the more conversions you’ll get, the lower your ACOS, and the more profitable your campaigns will be.
And again, if they’re all in your separate manual campaigns, they’re basically going to be in rotation with all your other keywords that might not be performing so well. So this is why you keep them separate: you’ll basically know that a certain batch of keywords and product targets are already your moneymakers, so you can just add more fuel to the fire.
Now let’s go back to the document you copied your keywords into.
Once you’ve copied over the keywords from your Excel sheet, paste them into a Google Doc, so you can organize your keywords and your ASINs in some sort of a format.
You should keep your keywords organized before you actually paste them over into your manual campaigns. This is because you want to keep track of which keywords you’ve already used and which ones you need to add as the months progress.
Label the list of keywords, e.g. “high CTR keywords with 30%> CTR.” And as you paste these keywords over into your manual campaigns, you’ll need to change the color to red – just so you know that the keywords themselves are already used or currently running in your manual campaigns as we speak.
And for the high CTR product targets
Download the ad reports once again, and then copy and paste the ASINs, bearing in mind the same rule with a 30% plus CTR.
So this very simple Amazon PPC optimization strategy will guarantee that you will have the lowest ACOS out of any of the campaigns you have in your account right now. It’s also going to be one of the easiest to maintain if you ever want to do any sort of “fancy” Amazon PPC optimization tricks or methods, and you just want to simply have an extremely low ACOS.
Also, this will probably be one of the fastest and easiest ways to maintain your profitability on Amazon if you just want to let your auto campaign run, and just throw in those keywords and product placements as they come in.
Just make sure as you’re using this particular strategy that every month you continually add new high CTR keywords and product placements into your manual campaigns. This means that in 12 months you’re going to have a pretty juicy set of keywords and product placements that are making you a ton of sales at the lowest ACOS possible.
Alright, so now that we’ve gone over how to build an Amazon PPC campaign with an extremely low ACOS, please check out my other video where I’m going to show you how to boost your sales velocity and ultimately your keyword rank on Amazon using Amazon PPC.
Don’t forget to join my private Facebook group, where we share the latest and greatest tricks and methods that are working today for Amazon sellers when they’re trying to optimize their Amazon PPC campaigns.
If you need a little extra help bringing your Amazon advertising campaigns to profitable levels and accelerating your sales, consider partnering with ZonRush. The best Amazon PPC Management Service that combines the power of artificial intelligence and human optimizations for off the charts sales growth.
If you’ve already tried this strategy and achieved a low ACOS with it, don’t hesitate to share!