Hacking Amazon Ads: Make Your Dollar Go Farther with Cost-Effective Campaigns

Navigating the world of Amazon advertising can often feel like a puzzle. As an Amazon marketing expert, I’ve observed a common scenario: advertisers frequently find that their broad match keywords often yield a lower Advertising Cost of Sale (ACOS) compared to exact match keywords. Similarly, your automatic campaigns targeting the same keywords as exact match campaigns sometimes have lower Cost Per Click (CPC) and ACOS. 

But never fear, you can make more money by spending less on expensive match types. Let’s explore how you can optimize your strategy for better results.

Why Do Broad Match Keywords and Auto Campaigns Perform Differently?

To put it simply: competition.

Many sellers aggressively bid on exact match keywords, driving up the cost significantly. In contrast, broad or phrase-match keywords typically face less competition, making them less expensive. 

Consider the keyword “board game.” The suggested bid for an exact match might be nearly $1 more than its broad match counterpart — a difference that could slash your costs by roughly 40%. This can significantly enhance both your profitability and sales volume.

However, cheaper does not always mean more sales or lower costs overall. Exact match campaigns, being more targeted, can sometimes be more cost-effective despite the higher initial bid.

The Strategic Role of Different Match Types

Exact match campaigns are straightforward: you target specific keywords, reducing the likelihood of irrelevant traffic, which can be ideal for highly converting keywords. Meanwhile, broad match and phrase match campaigns require a more hands-on approach.

Regularly reviewing your search terms reports is crucial. This practice helps you identify and remove irrelevant search terms, ensuring your budget is spent on keywords that truly contribute to your campaign’s success.

Auto campaigns, while often cheaper, also require careful monitoring to constantly optimize performance and ACOS.

The Balanced Approach to Amazon Keyword Strategy

It’s vital to maintain a balanced keyword strategy that incorporates a mix of match types:

• Exact match for high-conversion, high-volume keywords to boost rankings.
• Broad and phrase match to capture a wider audience at a potentially lower cost.
• Auto campaigns to discover new keyword opportunities that manual campaigns might miss.

Each type serves a distinct purpose and, when used collectively, can help you refine your advertising strategy, potentially lowering both ACOS and Total Advertising Cost of Sale (TACOS). Remember, the goal is not just to spend less but to spend smarter

Need Help Optimizing Your Amazon Ads?

If you’re an Amazon seller looking to optimize your performance, or if you need a fresh perspective on your strategy, reach out for a free audit from our Amazon team. We’ll deliver a winning strategy within 30 days and within 90 days have you driving results or your money back.