Detailed explanation of Amazon advertising cost control and optimization strategies

The proportion of Amazon advertising expenses is an important indicator for evaluating the effectiveness of advertising activities. For sellers, reasonable calculation and optimization of this proportion will help ensure the effectiveness of advertising expenditures, reduce costs and increase profits. This article combines the issue of whether domestic clicks on Amazon ads are included in advertising costs and how to control high advertising costs to provide sellers with comprehensive guidance.

Formula for calculating advertising cost ratio

The formula for calculating the proportion of advertising costs is as follows:

[ text{Advertising expense ratio} = frac{text{Advertising expenditure}}{text{Turnover or sales}} ]

This ratio should usually be controlled within a certain range. Too low may mean that the ad is not performing well, while too high may mean that advertising costs exceed a reasonable level, affecting profits.

Methods to control advertising costs

Control keywords and matching types

When it is found that the generalized keyword matching process has increased the ACOS (advertising expenditure to sales ratio) of the backend, sellers can use the phrase matching function and optimization function of the backend to obtain more accurate and closely related traffic. In addition, sellers should also check the keywords in the background that have low conversion rates but large click volume, and control inefficient traffic advertising costs as much as possible by adding negative keywords.

Increase bidding for high-quality keywords

In addition to adjusting the matching degree of keywords, you should also bid at higher amounts for high-efficiency keywords. After increasing the bid, the average cost per click can be increased, bringing more accurate traffic to the store, and thinking about how to apply these high-quality keywords in daily advertising and marketing activities.

Manage ACOS identical ad groups

Granular and refined management of ACOS helps to better promote higher-profit products. For ordinary products with lower profits, the goals need to be controlled. Placing ACOS target products of the same quality in the same ad group can effectively manage and increase sales.

Ad settings and goals

Ad settings determine whether domestic clicks are included in advertising costs. The Amazon advertising platform offers a variety of ad types and setting options, including where ads are served. If the advertising target is set to be global, clicks from both domestic and foreign countries will be calculated in the advertising cost. On the other hand, if your ad is set up to target a specific region, only clicks from that region will be counted.

Conclusion

In summary, Amazon advertising costs can be effectively controlled by controlling keywords and matching types, increasing high-quality keyword bidding, and managing the same ad groups in ACOS. Meanwhile, in the world of Amazon Advertising, flexibility and data-driven decision-making are key to success. By in-depth understanding of the characteristics and strategies of the advertising platform, sellers can better utilize Amazon advertising to achieve business growth and market expansion goals. It is crucial for sellers to reasonably calculate the proportion of Amazon advertising costs and adopt corresponding optimization strategies.