Learn How To Optimize Your CPC Bids

Once you’ve set up an ad campaign for your Amazon product, you will need to learn to optimise your CPC bids, to keep your ad spend accurate and avoid bidding on keywords that are unlikely to convert for you.

Sellers need to understand that testing their bids is at the core of CPC optimisation, and you can only optimise your bids if you have collected enough data to make informed decisions on whether you should lower or increase keyword bids.

First of all, you will need to calculate your target Amazon ACoS (Average Cost of Sale). By comparing your actual ACoS to your target ACoS, you will be able to measure how well your ads are performing against your goal profit margin.

• If your actual ACoS> target ACoS, it means you’re spending too much, i.e. you should lower your bid to test whether you can lower your ad spend without it affecting your sales considerably.
• If your actual ACoS< target ACoS, it means you have more budget to spend, i.e. you should raise your bid and test whether your ad reach (and therefore your sales) can expand exponentially.
• If your keywords are not receiving any impressions, check the product category (‘browse node’) and make sure that it is correct and that you have the keyword included in your listing or backend keywords.
• If your product category is correct and the keyword is included in the listing, then you will want to start increasing your bid, to test whether a higher bid can make the keyword ‘active’.
• Keywords that do not generate any sales over a longer period of time, and remain unprofitable even after the keyword bid is lowered, should be removed from your manual campaign and added to
  negative keyword list.

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