Perform bid optimizations in Amazon ad campaigns

Business benefits

Optimize your ad spend to generate a better ROI.

Download Bulk Sheets by navigating to Advertising > Bulk Operations and clicking Create Spreadsheet for Download.

If you are just running sponsored product ads, exclude brand asset data. This data is not relevant to sponsored product ads.

Sort and filter the data to show only Keywords and Product Targets.

Sort by ACOS, the advertising cost of sales.

The higher the percentage, the less profitable it is. For example, a 50% ACOS means that it’s spent 50% of the revenue to make a conversion. 100% ACOS means it’s spent 100% of the revenue to make a conversion.

So, if your product costs $20 and it’s spent $20, that means that that’s 100% ACOS, which is bad. Spending $20 to make $20 and then Amazon takes its fees and you have the cost of goods sold.

Lower the bids for those with a high ACOS.

Increase the bids for those ones with a low ACOS.

Lower the bids on those that are spending money and not making any sales at all.

Increase the bids on those that are not getting enough impressions.

Change bids in small increments, step by step, to avoid losing money.

For example, don’t go from $1 to $1.50, instead go up from $1 to $1.05, $1.10, 15 cents, 20 cents. You can do this frequently and it’s better because you’ll inch your way closer. Remember the sweet spot is always changing and reviewing these weekly is very important.