7 Amazon Sponsored Products Strategies That Lower ACoS by 40%
Amazon Sponsored Products campaigns can transform your sales, but only if optimized correctly. This guide reveals 7 proven Amazon Sponsored Products strategies that have helped sellers reduce ACoS by 40% while scaling revenue.
What Are Amazon Sponsored Products?
Amazon Sponsored Products are pay-per-click (PPC) ads that appear in Amazon search results and on product detail pages. These Amazon Sponsored Products ads help sellers increase visibility and drive sales through targeted advertising. When customers click your Amazon Sponsored Products ad, you pay a bid amount, making optimization crucial for profitability.
Why Sponsored Products Matter
- Increased Visibility: Products appear in top search results
- Higher Conversion Rates: Targeted ads convert better than organic listings
- Scalable Growth: Increase sales without waiting for organic rankings
- Data Insights: Learn which keywords drive sales
Table of Contents
- What Are Amazon Sponsored Products?
- Strategy 1: Start with Automatic Campaigns
- Strategy 2: Use Exact Match for High-Intent Keywords
- Strategy 3: Implement Negative Keywords
- Strategy 4: Optimize Bids Based on Time
- Strategy 5: Create Product-Specific Ad Groups
- Strategy 6: Leverage Product Targeting
- Strategy 7: Continuously Test and Optimize
Strategy 1: Start with Automatic Campaigns for Keyword Discovery
Automatic campaigns are your secret weapon for finding profitable keywords. Amazon’s algorithm automatically matches your products to relevant searches, revealing opportunities you might miss.
How Automatic Campaigns Work
Amazon uses three targeting methods:
- Close Match: Exact or close variations of your product
- Loose Match: Related searches and synonyms
- Substitutes: Alternative products customers consider
- Complements: Products bought together
Best Practices
- Run for 2-4 Weeks: Collect enough data (at least 1,000 impressions)
- Monitor Search Terms: Export search term reports weekly
- Extract Winners: Move high-performing keywords to manual campaigns
- Add Negatives: Block irrelevant terms immediately
Real Example
A seller running automatic campaigns discovered “wireless earbuds for gym” was converting at 8% with $0.45 CPC. They moved this to a manual campaign and scaled it to $5,000 monthly sales.
Strategy 2: Use Exact Match for High-Intent Keywords
Exact match targeting in Amazon Sponsored Products gives you complete control over when your ads appear. Use it for Amazon Sponsored Products keywords with proven conversion history.
When to Use Exact Match
- High-Converting Keywords: Terms that already convert well
- Branded Searches: Your brand name and product names
- Specific Products: Exact product model numbers
- Competitor Names: When customers search competitor brands
Exact Match Best Practices
- Start with High Bids: Bid 20-30% above suggested bid
- Monitor Closely: Check performance daily for first week
- Scale Winners: Increase budget on profitable keywords
- Pause Losers: Stop spending on keywords with 0 sales after 7 days
Strategy 3: Implement Negative Keywords Strategically
Negative keywords prevent wasted ad spend in Amazon Sponsored Products campaigns. This is one of the most overlooked Amazon Sponsored Products optimization strategies.
Finding Negative Keywords
- Search Term Reports: Export weekly and analyze
- High Spend, Zero Sales: These are your negative candidates
- Irrelevant Terms: Block terms that don’t match your product
- Competitor Brands: If you don’t sell competitor products
Negative Keyword Examples
For premium headphones ($200+):
- “cheap headphones”
- “budget headphones”
- “under $50”
- “free shipping headphones”
Implementation
Add negatives at both campaign and ad group levels:
- Campaign Level: Block terms irrelevant to entire campaign
- Ad Group Level: Block terms specific to product type
Strategy 4: Optimize Bids Based on Time of Day and Day of Week
Bid adjustments in Amazon Sponsored Products can significantly improve efficiency. Amazon allows bid modifiers for different times and days in your Amazon Sponsored Products campaigns.
Time-Based Optimization
Analyze your conversion data to identify peak performance times:
- Morning Hours: Often higher conversion for B2B products
- Evening Hours: Better for consumer products
- Weekends: May have different patterns than weekdays
How to Implement
- Export Performance Data: Get hourly and daily reports
- Identify Patterns: Find when conversions are highest
- Adjust Bids: Increase bids 20-30% during peak times
- Decrease Off-Peak: Lower bids 10-20% during slow periods
Example Bid Schedule
- Monday-Friday, 6 PM – 10 PM: +25% bid adjustment
- Saturday-Sunday, 10 AM – 2 PM: +20% bid adjustment
- Weekdays, 2 AM – 6 AM: -15% bid adjustment
Strategy 5: Create Product-Specific Ad Groups
Grouping similar products in dedicated Amazon Sponsored Products ad groups improves relevance and conversion rates for your Amazon Sponsored Products campaigns.
Ad Group Structure
Create separate ad groups for:
- Product Categories: Different product types
- Price Ranges: Budget vs. premium products
- Use Cases: Different customer needs
- Brands: If selling multiple brands
Benefits
- Better Relevance: Ads match customer intent more closely
- Easier Management: Optimize each group independently
- Improved Quality Score: Higher relevance = lower CPC
- Better Data: Clearer performance insights
Strategy 6: Leverage Product Targeting for Competitor Conquest
Amazon Sponsored Products product targeting lets you show ads on competitor product pages, capturing customers ready to buy. This advanced Amazon Sponsored Products feature helps you compete effectively.
Product Targeting Strategies
- Competitor Products: Target top-selling competitor listings
- Complementary Products: Products bought together
- Substitute Products: Alternative solutions
- Your Own Products: Cross-sell related items
Best Practices
- Target High-Review Products: Products with 100+ reviews
- Monitor Performance: Track which competitor pages convert
- Adjust Bids: Higher bids for high-converting pages
- Add Negatives: Block pages that don’t convert
Strategy 7: Continuously Test and Optimize
Amazon Sponsored Products optimization is ongoing. Regular testing and adjustments are essential for maintaining low ACoS in your Amazon Sponsored Products campaigns.
Weekly Optimization Checklist
Monthly Deep Dive
Common Amazon Sponsored Products Mistakes
Mistake 1: Setting and Forgetting
Many sellers create campaigns and never optimize them. Regular monitoring and adjustments are crucial for success.
Solution: Schedule weekly optimization sessions. Set calendar reminders to review performance.
Mistake 2: Ignoring Search Term Reports
Search term reports reveal what customers actually search for. Ignoring them means missing optimization opportunities.
Solution: Export search term reports weekly. Analyze and take action on findings.
Mistake 3: Bidding Too Low
Low bids mean your ads rarely show, limiting data collection and sales opportunities.
Solution: Start with suggested bids, then adjust based on performance. Don’t be afraid to bid higher for proven keywords.
Mistake 4: Not Using Negative Keywords
Without negative keywords, you’ll waste budget on irrelevant clicks that never convert.
Solution: Build negative keyword lists from search term reports. Add them proactively based on product knowledge.
Measuring Success: Key Metrics
Primary Metrics
- ACoS (Advertising Cost of Sale): Target 15-25% for most products
- ROAS (Return on Ad Spend): Aim for 4:1 or higher
- Conversion Rate: Track and improve over time
- Click-Through Rate (CTR): Higher CTR = better ad relevance
Secondary Metrics
- Impressions: Ensure adequate visibility
- Clicks: Monitor click volume trends
- Spend: Track daily and monthly budgets
- Sales: Total revenue from ads
Tools for Amazon Sponsored Products Management
Amazon Native Tools
- Campaign Manager: Built-in campaign management
- Search Term Reports: Keyword discovery
- Performance Reports: Detailed analytics
- Bid+: Automatic bid increases for top placements
Third-Party Tools
- Helium 10: Keyword research and campaign management
- Jungle Scout: Market research and optimization
- Sellics: Comprehensive PPC management
- PPC Entourage: Advanced campaign optimization
Advanced Tips for Lower ACoS
Tip 1: Use Broad Match for Discovery
Broad match helps find new keyword opportunities. Use it alongside exact and phrase match for comprehensive coverage.
Tip 2: Implement Dayparting
Adjust bids based on time of day when your customers are most active. This can reduce wasted spend during low-conversion periods.
Tip 3: Leverage Seasonal Trends
Increase bids and budgets during peak seasons (holidays, Prime Day, etc.) when conversion rates are typically higher.
Tip 4: A/B Test Ad Copy
Test different product images and titles in your listings to see which combinations drive better ad performance.
Real Success Story
A seller implementing these 7 strategies reduced their ACoS from 45% to 27% in 8 weeks while increasing ad sales by 60%. Key changes included:
- Systematic negative keyword management
- Time-based bid adjustments
- Product targeting on competitor pages
- Weekly optimization routine
Conclusion
Amazon Sponsored Products success requires strategy, not just spending. By implementing these 7 proven Amazon Sponsored Products strategies—starting with automatic campaigns, using exact match effectively, managing negative keywords, optimizing bids, creating proper ad groups, leveraging product targeting, and continuous testing—you can significantly reduce ACoS while scaling sales.
Remember, Amazon Sponsored Products optimization is an ongoing process. What works today may need adjustment tomorrow. Stay active, monitor your Amazon Sponsored Products performance, and continuously refine your approach to maximize ROI from your Amazon Sponsored Products campaigns.
Ready to optimize your Amazon Sponsored Products campaigns? Contact advertpreneur for expert Amazon PPC management services. We help sellers reduce ACoS, improve ROI, and scale profitable advertising campaigns.
