High ACoS Optimization for Improved Profitability

Client Problem:

The client was facing a high Advertising Cost of Sales (ACoS), which was affecting profitability. Despite running multiple PPC campaigns, the ads were not converting effectively, resulting in higher costs and declining ROI.

Our Solution:

1. Campaign Audit
Conducted an in-depth audit of existing PPC campaigns to identify underperforming keywords, placements, and ad types.

2. Negative Keywords
Added negative keywords to eliminate irrelevant traffic that was consuming the budget without generating conversions.

3. Bid Adjustments
Optimized bids based on performance by reducing bids for low-converting keywords and reallocating budget toward high-performing keywords.

4. Sponsored Brands & Sponsored Display
Launched Sponsored Brands and Sponsored Display Ads alongside Sponsored Products to increase product visibility and attract targeted audiences.

Results:

ACoS was reduced from 61.72% to 31.98%, while overall ad sales increased by 37%. The improvements resulted in better cost efficiency and profitability.