What is ACoS (Advertising Cost of Sale)? ACoS (Advertising Cost of Sale) Review

ACoS stands for Advertising Cost of Sale, which is the percentage of advertising costs and advertising sales. A low ACoS value means low advertising investment, high sales, and correspondingly good advertising results. ACoS is mainly a key indicator used to measure the performance of users' advertising investment in the Amazon market, that is, the proportion of advertising expenditure to advertising sales.

formula

ACoS = ad spend / sales revenue

Spend is the cost of a single click, Sales is the average order value and number of orders. The smaller the ACoS value, the better the benefit of advertising investment.

The reasons why ACOS remains high for a long time

1. High price

Since the ad has exposure and clicks, but no conversion, the first major reason may be that the price is not competitive. Others' similar products are priced much lower than yours, so how can you encourage buyers to place orders? Although Amazon is a platform that tends to be more high-end customer groups, price is still a factor considered by most buyers. The group that shops online is basically the middle class or below, and this is no exception in the United States.

At this point, some sellers will say that my selling price is almost no profit, how can you say that my price is too high? Can't I sell at a loss? Of course, I don't recommend selling at a loss. Any business must be for profit, otherwise it is just hooliganism. There is a reason here. As long as you investigate, you will know why others are making a profit at a lower price than you. Think about it yourself, I believe you will have the answer, and then communicate with the factory, either change the supplier or change the product material or increase the quantity to get a better purchase price.

2. The page has no reviews or the homepage has negative reviews

Most buyers would not dare to buy products without reviews because they don’t know what the product is like. This is the same mentality as when we shop on Taobao and JD.com. Similarly, if you have negative reviews, and buyers see the negative reviews as soon as they come in, how will you make the customers feel?

3. The product description is too bad

The buyer clicks through your ad and enters your detail page, which means that your pictures are OK. However, after entering, he finds that your description is not ideal and it really does not live up to your beautiful and attractive main picture. Seeing this, the buyer does not want to continue purchasing.

How to Lower ACoS

1. Optimize keywords and keyword matching types

If broad match keywords are driving up your ACoS, you can add them to phrase match and exact match to get more accurate and relevant traffic. Secondly, disable keywords with high click volume but low conversion rate, and add negative keywords to manual product promotion activities to minimize irrelevant traffic and advertising costs.

2. Increase bidding for high-performing keywords

Sort by sales and lock in keywords that can increase actual sales and reach ACoS targets. Raise bids specifically to be higher than the average CPC. Set it to broad match to get more quality traffic. In addition, consider adding words similar to this keyword to the campaign.

3. Set up ad groups based on your ACoS goals

The same ad group uses the same keywords and suggested bids, so it is difficult to manage ACoS in detail. Products with higher profits can consider taking on higher ACoS, and for products with lower profits, stricter ACoS targets may be required. Putting products with similar ACoS targets in the same ad group will help you manage your ads.

4. Optimize product details page

An attractive product detail page can encourage consumers to buy. In addition to adding high-quality pictures, it is recommended that your product title, bullet points, and description are consistent with your product to attract customers' interest.

5. Choose more eye-catching titles and pictures

It is recommended that you select different titles and pictures in brand promotion (formerly "Toutiao Search"), view and lock in the titles and pictures that bring you high traffic and high sales.

Set up 2 identical campaigns and test them by changing the title or customizing the image. For example, use a call to action, the most effective keywords, and adjust the order of product images. We will launch an article specifically for increasing brand awareness in October, so stay tuned.

6. When ACoS is too high, you can lower the keyword bidding

Find keywords with high ACoS from the advertising report and reduce their bids to slightly below the average CPC. This can reduce the maximum CPC while continuing to bring traffic through these keywords and maintain exposure.