Market Place: USA
Brand Category: Home & Kitchen
When this client reached out to us for managing his Amazon PPC campaigns, he was doing good in terms of margins and Sales, but he wanted to further improve his margins by cutting down his advertising spend on the overall account.
So we conduct an initial audit of his account and found that his overall ACoS was 16% on a spend of $21000.
We asked him about his target ACoS and he said that he wants it to be under 10% as a rough number. (You know client mindset 😉).
We took some time from him and did a deeper audit of his account on the campaign level.
At that point we came to know some more insights, it was a moderate brand with 58 ASINs and 246 active campaigns, by checking we found that some campaigns weren’t performing at all some were spending but not generating sales.
By analyzing his listing he was ranked well on some major keywords Organically and his listing was fully optimized, But some low search volume keywords were missing from his listing and he was not running campaigns on those keywords, neither he nor his previous agency targeted those keywords in any manner.
So it was the last week of May when we started working on his account and started optimizing his campaigns.
1st of all we started turning off campaigns that were not performing at all even not generating Impressions, by doing that the campaigns were reduced to 206 from 247.
2nd we grouped the single product campaigns and put them in their portfolio by doing that we got the structure and got to know which product is performing well and which needs optimization.
3rd we started checking irrelevant targeting and turned to pause all of the keywords that were irrelevant to the product that is being advertised.
4th we started negative targeting of exact keywords in other campaigns so that we could avoid clicks on similar keywords in multiple campaigns.
After implementing these strategies, we analyzed overall performance after a month (June):
Due to irrelevant keyword pause and negative keyword targeting the spend was reduced to $15,675 from $21000, resulting overall ACoS of 11.76%.
From next month we will be targeting new low search volume Keywords (>1000 SPM) and build our relevance on those keywords.