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10 Ways to Reduce Amazon PPC Costs Without Losing Sales

  1. Segment Keyword Bids: Adjust bids based on performance (e.g., increase for high-performing keywords, reduce for low-performing ones).
  2. Add Negative Keywords: Block irrelevant searches to stop wasting your budget.
  3. Automate Bids with Tools: Use AI tools like PPCAssist to optimize bids in real time.
  4. Schedule Ads for Peak Times: Focus your budget on high-conversion hours.
  5. Target Specific ASINs: Prioritize “beatable” products for better conversions.
  6. Track Metrics Daily: Monitor ACoS, CTR, and CPC to make quick adjustments.
  7. Test Ad Copy: Experiment with headlines and calls-to-action to boost CTR.
  8. Analyze Costs with Amazon Marketing Cloud: Find inefficiencies and improve ROI.
  9. Adjust for Seasonal Trends: Raise bids during key shopping events like Black Friday.
  10. Align TACoS with Organic Sales: Balance ad spend with total revenue goals.

These strategies can lower costs, improve ROI, and maintain sales growth. For example, using negative keywords saved one seller $500 a week, while targeting ASINs cut ACoS by 30%. Start optimizing today to stay competitive in Amazon’s ever-changing ad landscape.

Top 10 Amazon PPC Tips to Cut Costs and Increase Sales

1. Set Keyword Bids by Performance Segments

Managing Amazon PPC costs while maintaining sales requires smart keyword segmentation. By reviewing campaign data from the past 30-60 days, you can group keywords into performance categories and adjust bids to optimize results.

Here’s a simple way to segment your keywords:

Performance Segment Characteristics Bid Strategy
High Performers ACoS under 15%, strong CTR Increase bids by 5-10%
Medium Performers ACoS between 15-25%, average CTR Keep current bids steady
Low Performers ACoS over 25%, weak CTR Lower bids by 10-15%

For example, in Q2 2023, TechGadgets Pro applied this strategy to their wireless earbuds campaigns. By adjusting bids based on ACoS thresholds, they cut their overall ACoS by 22% and increased sales by 17%.

How to Apply This Strategy:

  • Export and analyze campaign data: Focus on metrics like CTR, conversion rate, and ACoS.
  • Group keywords into segments: Use the table above as a guide.
  • Set bid adjustments: Tailor bids based on each segment’s performance.

To further optimize, activate Amazon’s Dynamic Bidding "Down Only" feature. This automatically lowers bids for keywords unlikely to convert.

Pro Tip: Update your keyword segments weekly to stay on top of performance. Make incremental bid changes (5-10%) and ensure your maximum bids align with your product margins.

This strategy frees up budget space, which is essential for implementing Strategy 2’s negative keyword tactics.

2. Add Negative Keywords to Stop Wasted Spend

Using negative keywords is a smart way to cut unnecessary ad spend while keeping your sales on track. By blocking irrelevant searches, you can focus your budget on terms that actually drive results.

How to Spot Negative Keywords

Your Search Term Reports in the Amazon Advertising Console are the best place to identify these keywords. Look out for these patterns:

Search Term Type Characteristics What to Do
High-Cost Non-Converters Lots of clicks, no sales, high spend Add as negative exact match
Category Mismatches Terms tied to unrelated product types Add as negative phrase match
Price Qualifiers Words like "cheap" or "budget" for premium items Add as negative phrase match

Here’s an example: An electronics seller reduced their ACoS from 32% to 24% in just a month by adding negatives like "refurbished" and "used." This saved them about $500 a week without hurting their sales.

How to Add Negative Keywords

Amazon’s Bulk Operations tool makes it easy to update multiple campaigns. Use it to add negative phrase matches for broad terms like "refurbished" or exact matches for competitor brand names.

Tip: Check your Search Term Reports every week to find new terms to block.

Keep an Eye on Performance

After adding negatives, keep tracking your metrics to make sure you’re not limiting your reach too much. Amazon’s conflict warnings can help you avoid accidentally blocking profitable terms.

This focused approach not only reduces waste but also optimizes your campaigns for tools like PPCAssist, which we’ll cover in the next section.

3. Use PPCAssist for Automated Bid Management

PPCAssist

Adjusting bid is essential to efficiently manage your profits. PPC Assist uses expert rule-based strategies to adjust the bids at the right time.
If also manages keyword harvesting (targeting manually search terms from AUTO campaigns) and negative targeting.

How PPCAssist Adjusts Bids

PPCAssist uses real-time data like click-through rates (CTR), conversion rates, and seasonal demand trends to fine-tune your bids. As we take control very seriously, you always have to option to let everything in control mode so you confirm each suggestion or switch to auto mode with a view on what will be done.

Setting It Up Right

Even with automation, there are a few steps to ensure success:

  • Define your target ACoS (Advertising Cost of Sales) goals.
  • Set maximum and minimum bid limits.
  • Regularly check weekly performance reports.

Pro Tip: Try the free trial to see how it works. Many users report spending 60–80% less time managing bids after using PPCAssist.

Monitor Your Results

PPCAssist tracks essential metrics, such as:

  • TACoS and ACoS trends
  • ROAS (Return on Ad Spend) improvements
  • Budget efficiency

This automation lays the groundwork for Strategy 4, which focuses on time-based ad scheduling.

4. Schedule Ads Based on Peak Performance Times

Scheduling your ads to align with high-performing time windows ensures your budget is spent when it matters most. Sellers who fine-tune their ad schedules have reported cutting their Advertising Cost of Sale (ACoS) by up to 20% through smarter budget allocation.

Understanding Peak Performance Windows

Amazon’s busiest shopping hours are typically between 6 PM and 10 PM local time. However, these peak times can vary depending on your product category, audience location, and how shoppers interact with their devices.
You can find your peak performance window in the orders tab of PPC Assist dashboard

Implementation Strategy

Leverage data from your campaign automation tools (as discussed in Strategy 3) to analyze key performance metrics during different time periods:

Time Period Key Metrics
Hourly Conversion rates, CTR, ACoS
Daily Weekday vs. weekend performance
Seasonal Holiday trends, promotional impact

For example, a home goods seller reduced their ACoS by 18% by focusing their bids on lunchtime and post-work browsing peaks.

Fine-Tuning Your Schedule

Here are four actionable steps to refine your ad schedule:

  • Spot patterns: Use your campaign data to identify when performance peaks.
  • Segment schedules: Create separate ad schedules for weekdays and weekends.
  • Match bids to performance: Increase bids during high-conversion hours and scale back during slower periods.
  • Weekly reviews: Regularly evaluate performance and adjust as needed.

Pro Tip: Boost bids by 20% during peak hours and lower them by 10% during off-peak times. This helps maintain sales momentum while keeping costs per click (CPCs) under control.

Seasonal Adjustments

Adapt your schedule for major shopping events, including:

  • Prime Day
  • Black Friday and Cyber Monday
  • Holiday shopping season
  • Specific peak periods for your category

During these events, consider extending ad run times to cover increased traffic across different time zones. These adjustments can help you capture more sales during high-demand periods and pave the way for more refined strategies, such as ASIN-level targeting in Strategy 5.

5. Target ASINs less better than your offer

Focusing on specific ASINs can help lower your PPC costs while still driving strong sales. Ads targeting ASINs often convert 2-3 times better than keyword-based campaigns and can reduce your ACoS by up to 30%. This method works much like automated bid adjustments, concentrating your budget where it performs best. It also complements time-based ad scheduling by spending on products with higher chances of converting.

Identifying the right ASINs

A common mistake is focusing on the top performers with a lot of good reviews. If your offer is not better than theirs, this often lead to non-converting clicks resulting in expensive ads.

Your goal is to find the products that are close of less better than yours in terms of reviews, price and listing.

Complementary Product

Focus on complementary products rather than direct competitors. This approach is similar to keyword segmentation but applies to specific products.

For example, a seller offering premium yoga mats targeted five complementary ASINs and achieved a 15% ACoS with 25% more conversions compared to keyword campaigns.

Optimization Techniques

  • Bid Management: Start bids at 15-20% of the target product’s price, and adjust weekly based on performance data.
  • Performance Monitoring: Check your metrics weekly and refresh your targeting monthly.

Advanced Targeting Tips

Organize your campaigns based on ASIN types:

  • Direct alternatives
  • Complementary items
  • High-end products
  • Budget-friendly options

Pro Tip: Use negative ASIN targeting to avoid wasting ad spend on irrelevant product pages. This keeps your campaigns cost-efficient.

This method demands consistent monitoring, which ties directly into Strategy 6: Track Performance Metrics Daily.

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6. Track Performance Metrics Daily

Keeping an eye on your PPC campaign metrics every day is key to managing costs effectively and maintaining strong visibility. By analyzing performance data and making informed adjustments, you can ensure your campaigns stay on track.

Key Metrics to Monitor

Metric Target Range Action Trigger
ACoS 15-25% Adjust bids if it goes over 25%
CTR Above 0.35% Reevaluate ad copy if it falls below this
CPC Below $1.35 Lower bids if costs exceed this limit
Conversion Rate Above 10% Refine targeting if it’s consistently lower
RoAS Above 4x Pause campaigns if it remains under this mark

Using Smart Alerts

Set up alerts to catch issues before they escalate. These can include:

  • Drops in conversion rates compared to historical data
  • CPC exceeding $1.35
  • Daily budget running out early in the day
  • Unusual shifts in seasonal trends
  • Increased competition driving up bids

Optimization Routine

Create a schedule for regular optimization to keep campaigns performing well:

  • Daily Reviews: Check core metrics every morning for any unexpected changes or trends.
  • Weekly Updates: Look at cumulative data to spot patterns and adjust campaigns accordingly.
  • Monthly Deep Dives: Compare campaign structures, keyword performance, and seasonal trends for a more detailed analysis.

Daily tracking also reveals underperforming ads, which ties directly into the next step: testing and refining ad copy for better results.

7. Test Ad Copy to Boost Click Rates

Tracking daily performance (as discussed in Strategy 6) often highlights ads that aren’t pulling their weight. Testing different ad copy variations can directly address this issue. A well-organized testing plan not only improves click-through rates (CTR) but can also lower PPC costs. For example, ads focused on benefits tend to perform 15% better in CTR than those with generic product descriptions.

Structured Testing Framework

Use a clear framework to test and refine your ad copy:

Test Element Duration Success Metric
Headlines 2-4 weeks CTR improvement
Benefits 2-4 weeks Conversion rate
Call-to-action 2-4 weeks Lower click cost
Social proof 2-4 weeks Faster sales velocity

Key Copy Elements That Work

When creating ad variations, focus on these proven strategies:

  • Benefit-First Headlines: Highlight what the user gains instead of listing features.
  • Precise Numbers: Include specific savings, ratings, or timeframes to build trust.
  • Urgency Triggers: Use time-sensitive offers to encourage clicks, but avoid sounding desperate.
  • Social Proof: Reference customer reviews or verified user counts to build credibility.

"A 10% CTR boost reduces ACoS by 9%" – Amazon Internal Research

Use Automated Tools for Testing

Amazon’s A/B testing tool for Sponsored Brands campaigns makes it easy to test up to five versions of your ads simultaneously. This tool helps you find the best-performing combinations while keeping costs manageable.

To get reliable results, test only one variable at a time and allow 2-4 weeks per test. Refreshing ad copy monthly, rather than quarterly, has been shown to increase RoAS by 12%.

8. Use Amazon Marketing Cloud for Cost Analysis

Amazon Marketing Cloud

Amazon Marketing Cloud (AMC) offers a detailed way to analyze costs, helping you spot areas to save money without sacrificing sales. While testing ad copy (Strategy 7) can boost click-through rates, AMC dives deeper into the numbers to uncover cost-saving opportunities.

Cross-Channel Attribution Analysis

Understanding how ads work together across different channels can reveal ways to cut PPC costs. For instance, awareness campaigns – though they may seem pricey at first – often lower acquisition costs for Sponsored Products by boosting conversion rates.

Custom Reports to Fine-Tune Your Budget

Focus on these three AMC reports to optimize spending:

  • Daily spend patterns across campaigns: Spot trends and adjust budgets accordingly.
  • Category ROAS comparisons: See which categories deliver the best returns.
  • Customer group efficiency analysis: Understand which audience segments are the most cost-effective.

"Advertisers using AMC have seen up to a 47% reduction in cost per acquisition (CPA)"

These insights work hand-in-hand with daily metric tracking (Strategy 6), giving you the ability to shift budgets effectively and stay ahead.

9. Update Bids for Seasonal Sales Patterns

Seasonal CPC increases – often between 30-50% – require careful bid adjustments. Start planning 60-90 days before major events to secure ad placements ahead of peak competition. This builds on Strategy 4’s time-based scheduling by incorporating cyclical adjustments that align with market trends.

Plan for Key Shopping Events

Timeline Bid Adjustment Focus Areas
Early October +10-15% High-performing keywords
Mid-November +20-30% Products aligned with Strategy 5’s ASIN targeting
Black Friday/Cyber Monday +40-50% Top-selling ASINs
December 1-15 +25-35% Items tied to gifting themes

These increases are most effective when paired with Strategy 3’s automated bid management tools.

Adjust Budgets for Peak Seasons

During high-demand periods, shift your budget to focus on campaigns with the highest potential. The holiday season (November-December) typically represents 20-30% of annual retail sales. Boost daily budgets by 50% for your best-performing campaigns to capitalize on this surge.

Seasonal Timing for Bid Changes

Enhance Strategy 4’s scheduling by applying seasonal bid multipliers during peak shopping windows:

  • Raise bids during high-activity hours, such as 6 PM to 10 PM.
  • Lower bids during off-peak periods.
  • Tailor bid adjustments to your category’s historical performance trends.

Post-Season Adjustments

Gradually lower bids after the season ends while monitoring Strategy 6’s daily metrics to ensure profitability remains intact.

10. Match TACoS with Organic Sales Goals

Seasonal bid adjustments (Strategy 9) help manage short-term costs, but aligning TACoS with your organic sales goals is essential for steady growth. TACoS, or Total Advertising Cost of Sales, measures ad spend as a percentage of total revenue (both paid and organic).

Set Clear TACoS Targets

Product Stage Target TACoS
New Launch 40-50%
Established 10-25%

For established products, aim to keep TACoS about 3-5% lower than your ACoS. This ensures your advertising efforts work alongside your organic sales strategy rather than overshadowing it.

Steps to Fine-Tune TACoS

Use Amazon’s Brand Analytics to monitor TACoS weekly. Focus on keywords that improve both paid and organic rankings. For example, one seller reduced TACoS from 25% to 18% while boosting organic sales by 40%.

Seasonal changes can impact your TACoS targets. During peak shopping periods, it’s worth temporarily increasing TACoS to grab more market share. In quieter seasons, tighten your targets to maintain profitability.

Track Supporting Metrics

To ensure balanced growth, keep an eye on these metrics alongside TACoS:

  • Ratio of organic to paid sales
  • Shifts in category rankings
  • Review growth rate
  • Brand search volume

Focus on Long-Term Gains

When TACoS declines, it’s a sign that organic sales are strengthening. Use the ad spend you save to invest in product improvements and better customer service. This approach keeps costs under control while building a strong foundation for future sales.

PPC Tool Features and Cost Comparison

PPCAssist helps you fully manage your ads, from adjusting keywords to targeting new search terms and product.

Key Features

Here’s what makes PPCAssist stand out:

  • Ready-to-use expert strategies so you dont have to create complex rules
  • AI Assistant, that has been trained with the best practice to answer any question and even take action.
  • Reactive human support, always get an answer by a real human.

Pricing Breakdown

Tier Price Ideal For
Basic Analytics €19/mo New sellers
Assistant €99/mo Sellers who understand PPC Basics
Full Management Starting at €299/mo Saving a lot of time with a dedicated expert

The tier you choose should match the complexity of your campaigns, especially those based on Strategies 1-5.

Performance and User Feedback

PPCAssist users rate the tool highly, with a 5/5 satisfaction score in both EU and US seller central. Many report a 15-30% drop in ACoS, thanks to its mix of AI-driven automation and manual control options.

Advanced Analytics and Reporting

PPCAssist integrates with Strategy 8’s cost analysis by offering customizable reporting templates. These templates help analyze:

  • Attribution across multiple channels.
  • Overlapping campaign impacts.
  • Opportunities to improve ROI.

Scaled Solutions for Enterprises

For €299/month, the Managed service provides:

  • Dedicated campaign managers.
  • Tailored advertising strategies.
  • Weekly performance reviews.
  • Competitor benchmarking insights.

These services pair seamlessly with daily metric tracking (Strategy 6) and seasonal adjustments (Strategy 9), ensuring your campaigns stay optimized year-round.

Wrapping It Up

Cutting Amazon PPC costs while keeping sales steady hinges on applying the 10 strategies mentioned earlier, with a focus on ongoing optimization. Keeping a close eye on daily metrics (see Strategy 6) and using automated tools for adjustments (see Strategy 3) are key to lowering ACoS without hurting conversion rates.

The impact of these strategies can differ by category – like Electronics ($0.76 CPC) compared to Beauty ($0.68 CPC) – making it essential to tailor your approach. By doing so, you can strike a balance between paid ads and organic growth, even with seasonal changes and competitive challenges.

Use tools like PPCAssist’s dashboard (highlighted in Strategy 3) to audit your campaigns, uncover quick wins, and stay ahead in the marketplace.

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Author

Nassuf

Ex-Amazon Seller who struggled too much with PPC. Founder of PPC Assist

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