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: what’s behind it, how to calculate it, and why you need to know.

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:

ACoS = Advertising Expenditure / PPC Sales * 100%

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.

PPC module in sellerboard and its possibilities

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:

  1. Profitability and Analytics function for your PPC campaigns, where you can see your profit and loss per campaign. Here above we see the last 30 days. You can also see the number of orders triggered by PPC, but also information like Amazon fees and your estimated profit (example).
  2. Bid automation: sellerboard can give you bid recommendations and optimize your campaigns to reach your specific goals in profit or campaigns or even per keyword.
  3. Keyword automation, where you can automatically move keywords from one campaign to another for keyword harvesting, optimizing your keywords, and other automations, such as setting keywords to negative when certain criteria are met.

Automated PPC campaigns and their impact on your ACoS

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.

Managing PPC Automation Rules. What does “keyword harvesting” mean?

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.

PPC configuration in sellerboard

There are 3 statuses of automation rules that you can configure:

  1. the automated status is called ON. This means that all recommendations are applied automatically and are on autopilot.
  2. the TEST phase, in which sellerboard calculates the recommendations but does not apply them automatically.
  3. OFF status, which means that there are no recommendations for your PPC campaigns.

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.

Bid and Keyword Automation for PPC Campaigns

Bid automation

For users who choose to automate bids with sellerboard, the following options have been developed:

  • Up to 100K keywords that allow you to automate bids on a larger scale.
  • The ability to set the minimum and maximum bid in the campaign settings, i.e. sellerboard can limit the increase or decrease of the bid of a campaign.
  • Automation of bids for advertising campaigns (keyword targeting and ASIN targeting) with the “ASIN targeting” type,
  • Ability to download an Excel file with bid change history by going to the Automation History tab in your PPC dashboard in sellerboard.
  • Target ACOS goal for bid automation. You can specify your ACOS target directly per campaign and sellerboard will dynamically adjust your bids to reach that target.
  • Custom automation rules, i.e. you can adjust the parameters of the bid automation strategy according to your needs. The parameters are the following: Minimum number of clicks within the last 14 days required for a bid recommendation and the number of steps between the current and the target bid for the next bid recommendation. Select the Custom strategy in the campaign settings.

Keyword automation

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:

Test Sellerboard free of charge

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

We look forward to hearing from you.

via sellerboard

 

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