How To Lower Amazon Ads ACOS
Why ACOS Matters in Amazon Advertising—and How to Lower It
When it comes to Amazon advertising, success isn’t just about getting clicks or even sales—it’s about profitability. That’s where ACOS (Advertising Cost of Sales) comes in. If you’re running ad campaigns on Amazon, understanding your ACOS and knowing how to manage it effectively is critical to your long-term growth.
What Is ACOS?
ACOS (Advertising Cost of Sales) is a key metric that shows how much you’re spending on ads to generate each dollar of sales. It’s calculated as:
ACOS = (Ad Spend ÷ Attributed Sales) x 100
For example, if you spend $100 on ads and generate $400 in attributed sales, your ACOS is 25%.
A lower ACOS typically means your campaigns are more efficient and more profitable. But what’s considered a “good” ACOS depends on your business model, margins, and goals. For some, a 30% ACOS might be healthy—others might target 10–15% for profitability.
Why ACOS Is So Important
ACOS is one of the most important metrics for determining how well your Amazon ads are performing. Here’s why:
- It’s tied to profitability. If your ACOS is higher than your profit margin, you’re losing money on ads.
- It helps you scale. Controlling ACOS means you can confidently invest more into what’s working.
- It shows campaign efficiency. A high ACOS may indicate poor targeting, underperforming keywords, or overpriced bids.
If you’re not watching ACOS, you could be throwing ad dollars down the drain—even if your sales are rising.
Strategies to Lower Your ACOS
Lowering ACOS is all about improving the efficiency of your ad spend. Here are several proven strategies:
1. Refine Keyword Targeting
Don’t waste budget on irrelevant or underperforming keywords. Use negative keywords to block irrelevant traffic, and focus on high-converting search terms based on your campaign data.
2. Optimize Bids
High bids can eat into your margins. Lower bids on expensive keywords that aren’t converting, and increase bids on your top performers to maximize ROI.
3. Improve Product Listings
Ads drive traffic—but your listings close the sale. Make sure your titles, images, bullet points, and reviews are optimized to convert. Higher conversion rates = better ACOS.
4. Use Exact Match Where It Matters
While broad and phrase match types offer reach, exact match keywords can drive high-intent traffic and more efficient conversions.
5. Pause or Adjust Poor Performers
Regularly review campaigns to cut or reallocate spend from low-performing keywords, ASINs, or ad groups that consistently deliver high ACOS.
6. Focus on Profitable Products
Run ads on products with better margins. This gives you more flexibility to bid competitively while still maintaining a healthy ACOS.
7. Leverage Campaign Segmentation
Segment your campaigns by match type, product category, or performance level. This makes it easier to analyze and control ACOS across different strategies.
Final Thoughts
ACOS is more than a number—it’s a compass for your Amazon advertising profitability. Keeping a close eye on it and actively optimizing your campaigns can unlock sustainable, scalable growth.
By combining smart targeting, regular analysis, and well-optimized listings, you can significantly lower your ACOS—and get more value from every advertising dollar you spend.
