Compare the current ACOS with your target or set average ACOS.
High ACOS indicates inefficiency, suggesting that you’re spending too much on advertising relative to sales.
Optimization Steps:
Reduce bids for underperforming keywords or ASINs.
Identify negative keywords to eliminate irrelevant clicks.
Focus on high-performing keywords with strong ROAS (Return on Ad Spend).
Test and optimize ad copy and images for better conversion rates.
2. Spend vs. Sales
What to Monitor:
High ad spend without corresponding sales can waste budget.
Track cost-per-click (CPC) trends and adjust accordingly.
Optimization Steps:
Pause underperforming campaigns or keywords with high spend but no sales.
Lower bids for poorly converting keywords or ASINs.
Redirect budget towards profitable campaigns or products.
Use dayparting to focus spend during peak buying times.
3. Keyword Targeting
What to Monitor:
Monthly performance of keywords in terms of clicks, impressions, and sales.
Identify high-performing keywords and low-conversion ones.
Optimization Steps:
Conduct monthly keyword research using tools like Helium 10 or Jungle Scout.
Add high-performing keywords to your campaigns for better targeting.
Use negative keywords to avoid irrelevant clicks.
Split broad match keywords into phrase or exact match for better control.
4. Targeting ASINs (Competitor ASINs)
What to Monitor:
Performance of targeted competitor ASINs in Sponsored Display or Product Targeting campaigns.
Check conversion rates for competitor products you target.
Optimization Steps:
Perform a monthly competitor analysis to discover new ASINs to target.
Study competitor product listings for insights:
Pricing: Ensure your product remains competitive.
Reviews: Highlight your strengths where competitors fall short.
Features: Optimize your product listing to address customer needs.
Use customized creatives in Sponsored Display ads to stand out.
Remove underperforming ASINs and focus on those converting well.
Additional Tips for Campaign Optimization
Analyze Reports: Use Amazon’s Campaign Manager and Search Term reports to identify underperforming areas.
Test Ad Types: Experiment with Sponsored Products, Sponsored Brands, and Sponsored Display to find what works best for your audience.
Budget Allocation: Shift budget from low-performing campaigns to high-ROAS campaigns.
Listing Optimization: Ensure your product listing is fully optimized with keywords, high-quality images, and compelling descriptions to support ad performance.
Monitor Frequently: Check campaign performance weekly or bi-weekly to ensure timely adjustments.
