By using these two tips, you can also optimize your ad ACOS

How can we optimize the ACOS of ads reasonably? Here are some methods and relevant practical tools.

1. Reasonably plan the layout of advertising

First of all, we need to plan the advertising layout reasonably, and make good advertising layout planning for each stage and budget allocation for the entire matrix. Let’s first look at how we can layout our advertising at each stage.

From the principle diagram of Amazon's advertising matrix, we can see that at the very beginning of the funnel, for customers who have not yet recognized the entire category, we can use DSP, OTT and other advertising formats to reach them and let customers know about this category. With OTT advertising, you can showcase your brand together with Amazon's high-quality video content. You can insert auto-play and sound-on, non-skippable OTT video ads in front of licensed movie and TV content, which is very helpful to deepen users' impression of the brand and build brand awareness.

When customers know our brand, we can make full use of display ads to repeatedly reach people who have seen our products or similar products in the category in the past, thereby promoting their purchases. When customers decide to buy a product in a certain category and search for it, if they see our product promotion ads, or if they have an impression of our brand because of our previous display ads, they are likely to choose us among many brands, thus closing the deal.

Next, I will give you an example of how the entire matrix budget should be allocated (the example ratio is for reference only).

When we are making the entire advertising layout, we need to ensure that budgets are allocated in the stages of user awareness, consideration, purchase, and loyalty. We must pay attention to combining various different forms of in-site advertising such as product promotion, brand promotion, and display promotion, and confirm whether keywords, categories, brands, products, etc. are all positioned.

Under normal circumstances, the budget for the purchase stage will be relatively large, accounting for more than 60% of the budget. Of course, if the product ranks high in the category, such as ranking in the top three of BSR, it means that the product has a great advantage in search traffic. In this case, what we need to do more is to open the entrance at the front end of the funnel, so that more customers can know this category, understand our brand and finally make a purchase. Therefore, for such products, more budget can be placed at the upper end of the funnel. Of course, the budget allocation will vary depending on the product.

2. Reconstruct advertising data and allocate budget reasonably

Currently, Amazon advertising has many forms. If you want to restore the product performance, you must first reconstruct the data to know the data performance of different advertisements for a certain product. Through advertising data reconstruction, we can track and monitor the effects of various advertisements, so as to allocate budgets scientifically and reasonably and avoid wasting advertising budgets.

Next, I will do a reconstruction analysis for you. First of all, each ASIN has different traffic entrances. From the perspective of advertising, there are two main sources. One is the search entrance, that is, customers directly enter the ASIN page after searching for the corresponding keywords or enter the page after seeing the product display advertisement; the other is through association, that is, when customers are looking at other sellers' products or our other product pages, they are attracted by the advertisements associated with the product details page and click to enter the ASIN page. From the perspective of search keywords, SP and SB ads can find exposure positions through keyword targeting. From the perspective of association, all three methods can be targeted, and the location of each ad is different.

So how can we reconstruct advertisements efficiently and conveniently? This can be easily achieved with the help of advertisement reconstruction tools. Advertisement reconstruction tools can disassemble advertisement data in multiple dimensions and restore it to the corresponding product performance.

1. Disassemble from the perspective of advertising activities

Sellers with many variants and ASINs often have too many advertising campaigns, which leads to confusion and makes it difficult to efficiently view the data of related advertising campaigns. The advertising reconstruction tool can help us break down advertising data from the perspective of advertising campaigns. In the advertising reconstruction tool, we can clearly see which advertising campaigns have been launched for the product.

2. Analysis from the perspective of delivery method

The ad reconstruction tool can also disassemble the entire product's delivery method, and view what the product has delivered at the second level, so as to clearly know how many keywords we have delivered and the corresponding effects. We can also see how many ASINs are delivered at the associated entrance, which ASINs are the main entrances for traffic, and how they perform accordingly.

3. Disassemble from the perspective of traffic source

With the help of tools, we can also view the corresponding advertising investment and analyze the corresponding layout from the dimensions of search, product association, and advertising display. In most cases, search and product association account for more than 50%-60% of ASIN traffic. For new products or non-standard products, the competitive advantage in the search position is not great, and the efficiency of product positioning will be higher.

4. Dismantle from the perspective of traffic entrance

In the process of launching each product, keywords, products and categories can all be considered as segmented traffic entrances. Through the ad reconstruction tool, we can directly see which words actually bring traffic, which methods are used to reach them, and which ads are used for delivery, which is convenient for operational operations.

In addition, we can also judge which traffic entrance will have a higher input-output ratio based on the daily ranking changes of the traffic entrances, so as to make more refined adjustments.

5. Disassemble from the perspective of brand/account

The advertising reconstruction tool can also break down advertising data from the perspective of brand or account, making it easier for us to view different forms of advertising from the perspective of brand or account.