Driving Down ACoS

See how our Amazon PPC team improved ACoS from 28% to 12% over a 3-month period while increasing sales volume for a luxury housewares brand.
See Details

The Challenge

The client had been working with another agency for about a year. The agency had not been able to hit the goal of 20% ACoS over that time and in recent months performance had been going in the wrong direction. They decided to make the switch and gave us that 20% ACoS goal. Looking at performance over the past 90 days, ACoS was averaging 28%. The client made it clear the main goal here was efficiency but at the same time it was important to at least maintain a similar volume of sales or ideally to increase sales.

The Strategy

Our team reviewed the account to determine which product-keyword combinations were hitting goal and what was dragging performance down. It was a tall task as the previous agency had intermingled hundreds of ASINs into the same campaigns with keywords of varying degrees of relevancy. We needed to completely revamp the account structure.

We connected the account to our Amazon PPC Ads Management software, set the goal of 20% ACoS and built out hundreds of new campaigns. The campaigns were set at the most granular level possible – 1 product and 1 keyword per campaign with a mix of auto campaigns for search term prospecting and manual campaigns for maximizing volume and efficiency on profitable keywords.

We launched the new structure and ACoS immediately started to come down.

The Tactics

We used a 1-to-many structure with an auto campaign and an exact match manual campaign for each product/keyword combination. This allowed us to find new profitable search terms every day, move those terms into manual campaigns and bidding up for more volume on our most profitable keywords. At the same time our software was adjusting bids hourly to reign in wasted spend and increase efficiency account-wide.

The Bottom Line

ACoS improved right out of the gate, even during the initial data gathering period, which typically takes about 2 weeks. Following the software’s learning phase, things really started to take off. ACoS was beating goal at around 18% by the end of Month 1. By Month 3 we were down to 12%.

From there it was a matter of increasing sales volume while maintaining these high levels of spend efficiency. Over the first month back in growth mode, sales increased 65%.

Let's Work Together

Do you want results like these? Let’s talk.