Pay-Per-Click advertising on Amazon is becoming more expensive. CPCs are rising across the board. To stay profitable in 2024, you cannot just "set it and forget it." Here are the strategies successful brands are pivoting to.
Focus on TACOS, Not Just ACOS
ACOS (Advertising Cost of Sales) only tells half the story. TACOS (Total Advertising Cost of Sales) measures your ad spend relative to your *total* revenue. It accounts for the halo effect: ads drive sales, which drive ranking, which drives organic sales. A healthy TACOS allows you to scale even if your ad campaigns look expensive in isolation.
Sponsored Brand Video
Video ads in search results still have significantly lower competition than standard Sponsored Product ads. They take up more screen real estate and have higher click-through rates. If you aren't running video ads yet, you are leaving money on the table.
Defensive Targeting
Competitors are targeting your ASINs. You need to defend your turf. Run Product Targeting ads on your own listings (target your complementary products). This blocks competitors from showing up on your page and increases your average order value.
Dayparting
Does your product sell at 3 AM? If not, why are you bidding then? Use dayparting software or rules to lower your bids during low-conversion hours and increase them during peak shopping times (usually evenings and weekends).