Amazon PPC (Pay-Per-Click) advertising is one of the most powerful tools sellers can use to drive traffic, increase product visibility, and ultimately grow revenue. However, without proper optimization, sellers often find themselves with rising ACoS (Advertising Cost of Sales) and underperforming campaigns. To help maximize ROI and minimize wasted ad spend, this article covers six actionable and advanced Amazon PPC optimization tactics that can significantly reduce ACoS while boosting sales.
1. Segment Campaigns By Match Type
One of the most effective ways to gain control over your campaigns is by separating your keywords by match type—broad, phrase, and exact—into different ad groups or campaigns. This segmentation allows for more precise performance tracking and bid adjustments tailored to the keyword’s intent.
- Broad: Use for keyword discovery.
- Phrase: Retain moderate control with some flexibility.
- Exact: Optimize for highest conversion and ROI.
Fine-tuning bids based on match types makes it easier to manage costs and optimize performance at a granular level.
2. Leverage Search Term Reports for Negative Keywords
Regularly analyzing search term reports helps identify unprofitable or irrelevant keywords that are draining the advertising budget. By adding these as negative keywords, sellers can prevent ads from showing for low-converting search terms.
Implementing negative keywords at the ad group or campaign level ensures better targeting, ultimately reducing ACoS and improving your ad relevance.
3. Optimize Bidding Based on Time-of-Day and Day-of-Week Patterns
Not all hours or days perform equally well. With tools like Amazon’s campaign manager or third-party software like Helium 10 and Sellics, sellers can adjust bidding strategies based on time-based performance trends. For example:
- Increase bids during peak shopping hours.
- Lower bids or pause campaigns during off-hours.
This level of bid automation can drastically reduce wasted spend and drive more efficient conversions.
4. Use Product Targeting for Competitor Hijack Opportunities
Instead of targeting only keywords, sellers can use product targeting to place ads directly on competitor listings. This often results in lower CPCs and can help capture sales from less optimized listings. Key tips include:
- Target complementary products or weaker competitors with fewer reviews.
- Monitor performance and adjust placement or bids accordingly.
Strategic product targeting can both steal market share and prevent competitors from overtaking your listings.
5. Utilize Automated Rules and Bid Adjustments with Smart Campaigns
Amazon’s PPC platform now supports automated bidding strategies, including Dynamic Bidding and Rule-based Adjustments. By setting parameters that auto-increase bids on high-converting keywords and reduce spend on underperformers, sellers can ensure campaigns remain cost-efficient without constant manual oversight.
Smart automation, when configured correctly, balances spending with performance to yield better ROI and a lower ACoS.
6. Consistently A/B Test Ad Copy and Creative
Though often overlooked, testing different versions of ad creatives—especially on Sponsored Brands and Sponsored Display—can lead to significant performance improvements. Elements to test include:
- Headline variations
- Primary image vs lifestyle image
- Inclusion of keywords in the ad copy
Consistent A/B testing provides insights into customer preferences and drives higher click-through and conversion rates.
Conclusion
Reducing ACoS and boosting sales on Amazon require a systematic and data-driven approach. Advanced PPC optimization involves deeper segmentation, intelligent use of negative keywords, time-based bidding strategies, competitor analysis, and continuous testing. By applying these six key tactics, sellers can gain a competitive edge, improve profitability, and scale their Amazon business effectively.
FAQs
- What is a good ACoS on Amazon?
A good ACoS varies by product margin, but generally, an ACoS under 30% is considered healthy for most sellers aiming for profitability. - How often should I analyze my search term report?
It’s recommended to review the search term report weekly to identify new negative keywords and harvest converting terms. - What tools can help automate Amazon PPC optimization?
Tools like Helium 10, Sellics, and PPC Entourage offer automation features for bid adjustments, keyword tracking, and reporting. - Is product targeting more effective than keyword targeting?
Both have distinct advantages. Keyword targeting captures broader intent, while product targeting is ideal for conquesting competitor listings and cross-selling. - Should I pause low-performance keywords or reduce bids?
It’s advisable to reduce bids first before pausing keywords completely, especially if they have conversion potential with a better CPC.
