My role. Amazon PPC Expert
Project description. Problem: A client’s Amazon advertising was severely underperforming with an initial ACOS of 255.5%. This unsustainable figure indicated that the advertising costs were more than double the revenue generated from those ads, leading to significant financial losses. Outcome: These strategic changes resulted in a dramatic reduction of the ACOS from 255.5% to just 13.82% within a week. This substantial decrease of 241.68% in ACOS not only stabilized the financials but also positioned the campaigns for scalable success, maximizing ROI while maintaining cost efficiency.
How Did It work?
Problem A client’s Amazon advertising was severely underperforming with an initial ACOS of 255.5%. This unsustainable figure indicated that the advertising costs were more than double the revenue generated from those ads, leading to significant financial losses. The primary challenges identified were:
1. Inefficient Keyword Targeting: The ads were set up with a broad and unrefined keyword strategy, causing irrelevant traffic and low conversion rates.
2. Poor Bid Management: Bids were either too high or not adjusted based on performance, resulting in excessive spend without corresponding returns.
3. Lack of Ad Optimization: Ads lacked compelling content and were not tested for different audiences or product placements.
Solution and Results To address these critical issues, a focused and aggressive strategy was implemented immediately:
1. Refined Keyword Strategy: Shifted to a more selective keyword approach, focusing on high-converting terms and eliminating poor performers. This helped in attracting more qualified traffic.
2. Dynamic Bid Adjustments: Introduced automated bid management tools that adjusted bids in real-time based on the performance metrics of each keyword and ad placement, ensuring optimal spend.
3. Ad Content Revamp and Testing: Overhauled ad content to make it more engaging and conducted A/B testing to identify the most effective ad variations.
Outcome: These strategic changes resulted in a dramatic reduction of the ACOS from 255.5% to just 13.82% within a week. This substantial decrease of 241.68% in ACOS not only stabilized the financials but also positioned the campaigns for scalable success, maximizing ROI while maintaining cost efficiency.
