Resolving High ACoS in PPC Campaigns...

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case study

Resolving High ACoS in PPC Campaigns

Client Problem:

The client faced a high Advertising Cost of Sales (ACoS), which was affecting profitability. Despite running multiple PPC campaigns, the ads weren’t converting well, leading to increased costs and a declining return on investment.

Our Solution:

  • Campaign Audit: We conducted an in-depth audit of existing PPC campaigns to identify underperforming keywords, placements, and ad types.
  • Negative Keywords: By adding negative keywords, we eliminated irrelevant traffic that was draining the budget without conversions.
  • Bid Adjustments: We optimized bids based on performance, reducing bids for low-converting keywords and reallocating budget to high-performing keywords.
  • Implementing Sponsored Brands and Sponsored Display Ads: To increase product visibility and attract targeted audiences, we launched Sponsored Brands and Display Ads in addition to the standard Sponsored Products ads.

Results:

After implementing these changes, the ACoS dropped from 40% to 24%, while overall ad sales increased by 30%. The client was pleased with the cost efficiency and continued to see improvements in profitability.