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Lower your Amazon Advertising ACoS in 2023



Are you tired of struggling to lower your Amazon Advertising ACoS (Advertising Cost of Sale)? If so, you're not alone! Many sellers find it challenging to optimize their Amazon advertising campaigns to drive more sales and reduce their ACoS. But don't worry: there are several strategies you can use to lower your ACoS and improve the performance of your Amazon advertising campaigns.


Dayparting

If you have a limited advertising budget then dayparting should be your first step in lowering ACoS. Dayparting is the practice of scheduling your Amazon advertising campaigns to run at specific times of the day or week. It is an effective way to optimize your ad spend and improve the performance of your campaigns. This is especially noticeable if you are selling B2B products. Office supplies are a great example of a niche that could see more than a 50% reduction in ACoS by simply targeting campaigns to run during business hours.


There are several benefits to using dayparting for your Amazon advertising campaigns:

  • Improved ROI: By targeting specific times of the day or week when your target audience is more likely to be active and engaged, you can increase the chances of your ads being seen and clicked on, which can lead to a higher return on investment (ROI).

  • Increased control: Dayparting allows you to have greater control over when your ads are shown and to whom which can be especially useful if you have a limited budget or want to focus on specific times when your target audience is most likely to be online.

  • Enhanced targeting: By targeting specific times of the day or week, you can better align your ads with the needs and interests of your target audience. For example, if you sell sporting goods, you may want to target your ads to run on weekends when people are more likely to be engaging in outdoor activities.

  • Better performance tracking: Dayparting can help you track the performance of your campaigns more effectively by allowing you to see how they perform at different times of the day or week. This can help you make informed decisions about how to optimize your campaigns for the best possible results.

Overall, dayparting can be an effective way to optimize your Amazon advertising campaigns and improve their performance.


Negative Keywords

Using negatives is an effective strategy for lowering your ACoS. Negatives are keywords that you exclude from your campaigns to prevent your ads from showing up for irrelevant searches. By using negatives, you can help ensure that your ads are only shown to users who are interested in your products, which can help lower your ACoS. To find negative keywords, you can use tools like the Sellozo AI tool or Amazon's search term report.


Use Exact Match Keywords

Shifting your spending from broad and phrase to exact match can also help lower your ACoS. Exact match keywords are more specific and targeted, which can help improve the relevance of your ads and drive more qualified traffic to your product listings. By shifting your spending to exact match keywords, you can help lower your ACoS and improve the performance of your campaigns.


Optimize your Product Titles and Descriptions

Another way to lower ACoS is to make sure your product titles and descriptions are optimized to improve the relevancy of your ads. Additionally, use high-quality images to catch the eye of potential buyers and stand out among your competitors’ products.


Use our Secret Weapon: Sellozo AI Automation Software

One of the quickest ways to lower your ACoS is by using software like the Sellozo AI tool. This powerful tool uses artificial intelligence to analyze your advertising data. The Sellozo AI-based optimizer will adjust your bids, create keyword and product targets, advertise during the most profitable hours while cutting off wasteful hours, and adjust your campaign budgets to drive more sales and lower your ACoS. The tool even provides negative keywords and advanced keyword harvesting, making it easy to continuously improve your campaigns.


Not ready for an AI-based tool?

Not a problem! However, do note when comparing the impact of all the ways to lower your ACoS, nothing is more impactful than having the right bids. By adjusting your bids manually based on the performance of that specific keyword you can ensure that you're paying the right price for each click and maximizing your return on investment.


You can use Amazon's Advertising Cost of Sales (ACoS) and Return on Advertising Spend (ROAS) metrics to track the performance of your keywords and determine which keywords and targeting options are working best. Making adjustments frequently and monitoring progress is key. If ACoS is trending up on a specific keyword start lowering the bid. We suggest making small frequent changes but don’t ever make more than one per day as Amazon typically takes 24-48 hours to attribute most of the sales data. Remember, knee-jerk reactions do more harm than good!


By implementing a combination of these strategies, you can drive more sales and lower your ACoS, improving the overall performance of your Amazon advertising campaigns. Don't let a high ACoS hold you back - take control of your campaigns and start lowering your ACoS today!


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