In this episode of "That Amazon Ads Podcast," Stephen and Andrew discuss why optimizing Amazon ad placements based solely on ACOS (Advertising Cost of Sales) can be a mistake. They argue that placement adjustments should not be made in isolation but in conjunction with keyword bids, as placement modifiers only increase keyword bids. Stephen explains that focusing on ACOS alone without considering the underlying keyword bids can lead to inefficient ad spending. He uses a screen share example to illustrate how different keyword bids can create misleading ACOS data for placements. They emphasize that the relative difference in conversion rate or revenue per click (RPC) between placements is the key factor in determining bid adjustments, not the target ACOS. They caution against increasing bids across the board to reach a target ACOS, as this can negatively impact keywords with already optimized ACOS. The hosts recommend listeners review episode 44 for a deeper understanding of placement optimization and offer a free AdLabs trial for account analysis.
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