Today we would like to show you an article from our partner sellerboard. Among other things, you will learn what is behind the abbreviation ACoS and why this is so important for Amazon sellers. You will also get insights into sellerboard's PPC dashboard. Furthermore, you will learn how bidding and keyword automation works for PPC campaigns.
Amazon ACoS (Advertising Cost of Sale) is a key indicator of the performance of your Amazon PPC (Pay Per Click) ads. Simply put, the ACoS measures the efficiency of every dollar you spend on a PPC campaign.
ACoS is the ratio of advertising spend to sales.
You can calculate the ACoS with the following formula:
For better understanding, let's take an example: a PPC campaign has generated $500 in ad sales and the cost of the ads is $100, then the ACoS = 100 / 500 * 100 = 20%.
This means that for every dollar earned, 20 cents was spent on advertising.
There is an easier way to calculate ACoS by entrusting this process to special tools like sellerboard Profit Analytics. In your sellerboard account all indicators are calculated automatically.
Amazon PPC (pay-per-click) is a type of Amazon's internal advertising system that allows advertisers to pay only when a user clicks on their ads.
PPC allows sellers and brands to use specific keywords to create ads for their products that appear in Amazon search results and competitor product listings.
As you probably know, sellerboard has a PPC module that includes 3 functions:
In sellerboard PPC menu you can configure the parameters for keyword automation and view the recommendations for your keywords. You can even create automatic campaigns for your keywords.
You can see the keywords under the auto-campaign and search for terms per keyword under each keyword. Also for the keywords you can see the ad spend and average CPC (cost-per-click), ACoS and profit you make with that keyword. And if you have set up rules for keyword automation, sellerboard will make recommendations for you.
If one of the campaigns doesn't make sense anymore because you have no sales after a certain number of clicks - let's say 10 - you can add a keyword to the negative list if it looks like it is no longer relevant. Once this is implemented, you will no longer waste money on such a keyword and achieve a better ACoS.
If you have a poorly performing search term that costs money but doesn't bring in sales, you can create a rule and simply set that search term to "negative" to stop wasting money and configure a maximum number of clicks after which you should get at least one sale. If you set this number low, you won't waste money, but you might get rid of some search terms that are potentially good if you gave them a little more time.
The second rule is about keywords or search terms that perform well. Sellerboard checks keywords and if they perform well according to the criteria you set, you set the keyword to negative in the original campaign and create it as a keyword in another campaign.
Thus, you can edit the negative and auto campaign and also set the parameters, the most obvious and the default option being the number of orders.
For example, if you have had five orders for a particular keyword in the last 14 days, then it qualifies for an upgrade, i.e. a move to another campaign, but you can also specify other criteria here, such as conversion rate or ACoS.
If the ACoS is less than 20 or if you have a profit of $40 and your keyword was profitable in the last 14 days, so you save more than zero profit, you should move it to another campaign.
The strategy behind this is that you run an automated campaign and as soon as you discover a keyword that is performing well, for example because there have been more than five orders within the last 14 days, you move that keyword to a manual campaign and start optimizing the budget or bid for that keyword in a separate campaign. To make the most of this, to achieve the best possible ACoS for this keyword is called "keyword harvesting". You can accept the recommendations, then they will be sent to Seller Central in the Advertising Console and applied to your Amazon seller account.
There are 3 statuses of automation rules that you can configure:
When you run an autopilot campaign, you can still view the changes sellerboard made. For example, if you don't like any of these changes, you can change the parameters or disable automation.
In sellerboard you will also see two tabs. One of them is bid automation and another one is keyword automation.
For users who choose to automate bids with sellerboard, the following options have been developed:
Another option in sellerboard is to configure the target for the keyword for the search term. The keyword can be created in a campaign or a group. Then you can:
- set the type of match to exact, wide or even phrase, and
- set a bid to default or custom for the selected campaign and a target group.
Once you have configured and applied all the settings, you can activate the campaign. If you set the autopilot or campaign to "TEST" and check the recommendations in the next few days, you can set the status to "ON" if you like them and always accept sellerboard's recommendations.
sellerboard is a precise profit analysis service for Amazon sellers with additional tools: Follow-up mail campaigns, inventory management, refunds for lost and damaged goods and other FBA errors, PPC optimization, listing change notifications. All this starting from 15€ per month with a free trial.
Get your 2-month free access to sellerboard via this link:
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That was our article about ACoS and PPC with sellerboard. Do you have any further questions about sellerboard or would you like to learn more about Amazon optimization? We are happy to provide you with advice and support in this regard. Just send us a message - without any obligation, of course.
MadeByBrain - Amazon Seller Agency
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