There are many factors that need to be considered when trying to improve your overall performance when advertising on Amazon, review this checklist below to help you pinpoint areas of your account that may be affecting performance. Learn even more tips and tricks: Evaluating Performance
Campaigns Page: Review Campaign Performance
- Verify proper campaign structure. To ensure your campaigns run efficiently you must group together products with similar margins, goals otherwise you may find yourself over or under spending on certain terms. Review this checklist to see if your campaigns are structured correctly.
- Make sure that you have a mirrored campaign structure -- this means that you want a corresponding manual campaign for every automatic, with the same ad groups and same SKUs within each ad group. Learn more about mirrored campaign structure.
Max Ad Cost per Sale (MACS): Enable Bid Automation
Properly setting MACS is key to optimal performance with Flywheel.
- Set the appropriate MACS for each campaign. MACS should align with campaign objectives, product margin, and prior performance. Learn how to set MACS.
- Quick guide for setting and adjusting MACS: The Do's and Dont's
- Ensure MACS are relatively near current ACoS. We recommend a MACS that is no more than 10% below the current ACoS to prevent sudden declines in spend and performance. For campaigns in the launch stage, a MACS well above the ACoS is acceptable. Refer to the MACS Calculator for suggestions, and learn about when to change MACS here.
- Assign unique MACS for each campaign. Are all MACS set to the same number? Using the same advertising strategy for all campaigns is unlikely to yield positive results for all products. Assign MACS on an individual basis, for best results, learn more about the factors that influence performance: Setting MACS: Deep Dive.
Double-down on top-performing keywords and reduce ad spend in a thoughtful way.
- Ensure that you’ve taken Keyword Actions. We recommend doing this on a weekly basis. Keyword Actions help you use your ad dollars in the most efficient way possible by reducing wasted ad spend and getting more targeted with productive ad spend.
- If your campaigns are running at a high ACOS focus on only adding new keyword recommendations if they have 2 or more conversions.
- Carefully add negative keywords. Are you acting on all suggestions? If so, you may be hurting your sales by negating relevant keywords. If you’ve seen a sales dip in a particular campaign, reverse any associated relevant negative keywords with $5 - $10 in prior spend, this can be done in the change history section of Flywheel.
Learn how to evaluate your negative keyword recommendations based on your business and goals: Best Practices for Adding Negative Keywords
Verify advertising efficiency and profitability at the product level. Learn more about using Product Metrics.
- Increase ad spend for SKUs not being advertised. Look for products without any associated campaigns and healthy gross margins. These present an opportunity to increase sales volume.
- Review SKUs that are advertised in too many campaigns. High TACoS products and those in more than 2 campaigns indicate that you may not be spending your ad dollars very wisely. If there is no strategic reason for a product to be in more than 1 automatic and 1 manual campaign, consider pausing those ads. For products that are not in the launch phase, higher TACoS is acceptable.
- Locate and act on unprofitable products. Products with slim margins may be losing you money. If these products aren’t in a launch phase, consider pausing advertising to increase margins, and look at increasing the selling price (though both these actions could lead to lower sales). Consider divesting from the product if it is a long term issue.
- Get a pulse check on your best sellers. Sort from highest to lowest for total revenue or units sold, and check out the gross margin column. How do these numbers compare to previous periods? Lower TACoS implies more efficient advertising, while higher TACoS indicate higher advertising costs.
For video guidance and more ways to use the Product Metrics page, consult this article.