People often think that running Amazon ads means more ACOS, but you now want to optimize the ads, get in control over ACOS, and you want to scale now. This brings us to the next question: How to increase your sales without ACOS going too high?
Most people think that you have to spend more to get more traffic, which also means more wastage, but with A2Z Publishing, this is not true anymore. Over the course of time, it has been proven by us that smart scaling can also be profitable and possible.
June vs. July
Below is the comparison of our Amazon KDP ads dashboard for the month of June versus July:
Amazon Ad Spent vs. Sales Comparison
We spent more, earned more, and even reduced ACOS.
So how did we do it?
The Strategy That Made It Happen
This wasn’t a “throw more money” approach. It was a calculated, low-bid, high-conversion strategy based on 3 principles:
We have used a smart strategy where we did not just spend money, but it was fully calculated, was lowered, and turned out to be highly converting. We used three simple principles for it.
Launching Campaigns By Measuring Sales Data
We used the service terms that we used in the month of June to drive more sales. Rather than keyword stuffing in a single ad group, we created single keyword ad groups for complete control.
Use Fixed Bids With Very Low Bid Amounts
We decided not to opt for dynamic bidding because low bids mean low CPCs, which means better control over ACOS. We used conversion history to push up to the page and not the bid.
Target Organic Page 2–5 Keywords
We used the keywords that were ranking organically on pages 2–5 that already showed amazing results when supported by ads. These keywords have low CPCs but the buying intent is higher.
The Mindset Shift: From Aggressive to Intentional Scaling
A mistake that people often make is that they keep working on the same campaign that worked well the first time. But what we did was we did not increase the budgets on the campaigns that we did before; rather, we created new fixed bids using converting keywords, and we focused on efficiency rather than volume.
With this, we almost doubled our revenue and earned 440 orders with $1,160 spent, keeping ACOS at just 12.76%.
What You Can Do Next
If you are currently making decent sales with low ACOS and you are scared to scale, then there are a few things that you need to do:
- You must export your converting keywords from the last month.
- Start with new campaigns with fixed bids.
- Go ahead and opt for keywords that have been ranking from page 2 to 5.
- Try to bid lower and let the conversions do the rest.
Final Thoughts
It is not always necessary that just because you want to scale, you have to spend more. You have to be smart and use the right strategies and not just splurge on the budget. You should rethink your approach and find out what works best for you by intercalating our strategy into your work. It will ensure you build smart campaigns that are not just bigger in size.
