Want to lower your Amazon ACoS in 2025? Start here. These 7 tips will help you optimize your PPC campaigns, cut costs, and boost profitability. From smarter keyword targeting to leveraging AI-powered tools, here's what you need to know:

• Smarter Keyword Targeting: Focus on long-tail keywords, use negative keywords, and refine match types to improve relevance and reduce wasted spend.

• Smart Bidding: Use Amazon's dynamic bidding options, time-based scheduling, and AI-powered bid management for data-driven decisions.

• Better Campaign Structure: Organize campaigns with one keyword per ad group, split brand vs. non-brand campaigns, and tier campaigns based on performance.

• Improve Product Listings: Optimize titles, bullet points, images, and A+ Content to increase conversions and lower ACoS.

• Use PPC Analysis Tools: Leverage Amazon Advertising Console, third-party tools like Helium 10 Adtomic, and Amazon Attribution to track and refine campaigns.

• Control Costs: Adjust budgets, pause low-ROAS campaigns, and dynamically scale spending based on performance.

• Regular Reviews: Weekly and monthly performance reviews ensure your campaigns stay optimized and aligned with goals.

Quick Overview of ACoS Targets in 2025:

| Business Type | Target ACoS Range |
| --- | --- |
| Established Brands | 15-25% |
| New Products | 30-40% |
| Luxury Items | 50-60

These strategies will help you adapt to Amazon's 2025 advertising updates, including voice search integration, cross-platform attribution, and interactive ad formats. Let’s dive deeper into each tip to start reducing your ACoS today.

Top 3 Amazon PPC Strategies to boost your Sales and Lower your ACoS

Tip 1: Smarter Keyword Targeting

Keyword targeting is key to reducing ACoS, especially with Amazon's 2025 algorithm updates focusing on relevance. With voice search becoming more prominent, aligning your ads with customer queries is more important than ever.

Focus on Long-Tail Keywords

Go for detailed phrases like "lightweight breathable running shoes for marathon training." These terms attract more qualified buyers and face less competition. Long-tail keywords make up 70% of all search traffic . Check Amazon's Search Term Reports weekly to uncover new long-tail keyword opportunities.

Use Negative Keywords Wisely

Negative keywords help cut down on wasted ad spend by filtering out irrelevant searches. For example, advertisers using negative keywords often see a 35% boost in click-through rates . Consider excluding:

• Competitor brand names

• Attributes your product doesn't have

• Price ranges that don't fit

• Categories unrelated to your product

Review search term reports regularly to find new terms to exclude and keep your targeting sharp.

Choosing the Right Keyword Match Types

Match types determine how closely a keyword must align with a search term. Here's a quick guide:

• Broad Match: Great for discovering new keywords (e.g., "running shoes" might match "jogging sneakers").

• Phrase Match: Balances reach and accuracy (e.g., "men's running shoes" could match "best men's running shoes").

• Exact Match: Best for top-performing keywords (e.g., "men's blue running shoes" matches only exact searches).

Exact match keywords often convert 3-4% better than broad match . Start with broad match to gather data, then shift successful keywords to phrase and exact match campaigns for better results.

Tip 2: Smart Bidding with Data

Smart bidding ensures your ad budget is spent effectively by aligning with patterns that drive conversions. Amazon's machine learning tools now analyze factors like time of day, device type, and customer behavior, making data-driven bidding strategies more essential than ever.

Dynamic Bid Adjustments

Amazon provides two dynamic bidding options to help you manage your ad spend:

• "Dynamic Bids - Down Only": Ideal for testing new keywords and avoiding overspending.

• "Dynamic Bids - Up and Down": Best for optimizing high-performing campaigns.

According to recent data, sellers using these strategies have seen an average 21% boost in sales while cutting ACoS by 11% . To get the most out of this feature, set your base bid at your target ACoS and allow the algorithm to adjust within your set range.

Time-Based Bid Scheduling

Time-based scheduling lets you focus your budget on peak selling hours while cutting back during slower times. By analyzing hourly performance data, you can pinpoint the best times for conversions.

This method has been shown to increase ad efficiency by 15-20% during high-conversion periods . Use historical data to identify these windows and adjust your bids accordingly for maximum impact.

AI-Powered Bid Management

AI-driven bidding tools have become essential for Amazon sellers. These systems analyze real-time market data to make informed bid adjustments based on:

• Competitor pricing

• Inventory levels

• Seasonal trends

• Customer buying habits

Some third-party AI tools have delivered impressive results, with sellers reporting up to a 30% drop in ACoS . Regularly track metrics like conversion rate and CTR to ensure your bidding strategy stays on track and delivers the expected results.

Tip 3: Effective Campaign Organization

While smart bidding focuses on maximizing the value of individual keywords (as discussed in Tip 2), how you structure your campaigns plays a big role in scaling your successes.

One Keyword Per Campaign Setup

Using a One-Keyword-Per-Ad-Group structure has been a game-changer for Amazon sellers in 2025. This setup gives you precise control over each keyword’s performance and budget. Sellers using this method have seen up to a 38% drop in ACoS compared to more traditional campaign arrangements .

How to make it work:

• Assign specific budgets to keywords that consistently convert.

• Monitor performance for each keyword individually to fine-tune results.

Brand vs Non-Brand Campaign Split

Dividing your campaigns into branded and non-branded categories is key to balancing visibility and cost management. Branded campaigns typically boast 30-50% lower ACoS compared to non-branded ones .

| Campaign Type | Characteristics | Strategy Focus |
| --- | --- | --- |
| Brand | Lower CPC, Higher conversions | Maximize impression share, Protect brand search results |
| Non-Brand | Higher CPC, Lower conversions | Use cautious bidding, Target market expansion

Performance-Based Campaign Tiers

Organizing campaigns into tiers based on performance helps you allocate your budget wisely and maintain a healthy ACoS.

• Top Performers (Tier 1): These campaigns feature keywords with the highest conversions and lowest ACoS. Dedicate the largest share of your budget here and use aggressive bids to boost visibility.

• Moderate Performers (Tier 2): These keywords show average ACoS and steady conversions. Balance your bidding here and refine results with A/B testing.

• Underperformers (Tier 3): Reserve these for diagnostic testing. If a keyword doesn’t improve after two rounds of optimization, consider pausing it.

This tiered strategy works hand-in-hand with Tip 4, ensuring your ad spend aligns with products that are most likely to convert.

Tip 4: Product Listing Improvements

The quality of your product listings has a direct effect on PPC performance. Research from Sellics shows that well-optimized listings can boost conversion rates by up to 30% . Higher conversion rates mean lower advertising costs per sale, which is key to reducing your ACoS.

Keyword Integration in Listings

Placing keywords strategically in your listings helps Amazon's A9 algorithm assess the relevance of your ads. For example, Jungle Scout's case study found that proper keyword integration reduced ACoS by 15% .

Here’s how to structure your listing elements effectively:

| <strong>Listing Element</strong> | <strong>Keyword Strategy</strong> | <strong>Conversion Impact</strong> |
| --- | --- | --- |
| <strong>Title</strong> | Include primary keywords in the first 80 characters | Can boost CTR by up to 40% |
| <strong>Bullet Points</strong> | Use secondary keywords and highlight benefits | May increase conversions by 25% |
| <strong>Backend Terms</strong> | Add misspellings and alternate keywords | Expands impression reach by 22

Testing Enhanced Brand Content

A+ Content (formerly called Enhanced Brand Content) can increase sales by 3-10% on average . Research from Pattern shows that well-optimized A+ Content can improve conversion rates by up to 10% , which helps lower your ACoS.

When testing A+ Content, focus on:

• Building emotional connections with your audience.

• Using comparison charts to highlight advantages over competitors.

• Including product demonstration visuals to showcase features.

• Adding social proof, such as customer reviews and certifications.

Product Images and Graphics

Visuals are critical. According to eMarketer, 83% of online shoppers say product images are the most important factor in their buying decisions . AMZScout data reveals that professional-quality images can reduce ACoS by 18% compared to basic photos .

Optimize your product visuals with:

• High-resolution images on a white background.

• Lifestyle photos to show the product in real-world use.

• Infographics that highlight features and specifications.

• Size comparison images to give buyers a clear sense of scale.

Use tools like Amazon Brand Analytics and the Advertising Console to track the impact of these improvements. A strong product listing sets the stage for more effective PPC strategies (covered in Tip 5).

Tip 5: PPC Analysis Tools

After optimizing your product listings (Tip 4), the next step is leveraging tools that help lower your ACoS. Recent data reveals that sellers using advanced PPC tools see an average 18% drop in ACoS .

Amazon Advertising Console Guide

The Amazon Advertising Console is your go-to platform for managing campaigns. As of 2025, it includes features designed to help reduce ACoS:

| Feature | Purpose | Impact on ACoS |
| --- | --- | --- |
| Real-time Tracking | Monitor campaign metrics live | Allows instant adjustments |
| AI-powered Insights | Automated bid recommendations | Simplifies bid management |
| Custom Reports | Focused KPI analysis | Highlights cost-saving areas |
| Audience Segments | Target specific groups | Boosts ad relevance and ROI

These AI-powered tools can pinpoint underperforming keywords and recommend bid adjustments based on your campaign's historical data . For daily management and basic tweaks, the console is a must-have.

Third-Party PPC Tools

While Amazon's tools are helpful, third-party platforms provide additional features for deeper optimization. For example:

• Helium 10 Adtomic: This tool uses AI to automate bid adjustments, ensuring your bids stay optimal. It has a 4.5/5 rating based on 237 G2 reviews .

Amazon Attribution Setup

Amazon Attribution allows you to track how external traffic impacts your PPC campaigns. Available for free to brand-registered sellers , it provides insights into your entire advertising strategy.

To make the most of this tool:

• Generate tracking tags

• Monitor conversions

• Compare performance across channels

• Adjust your ad budgets accordingly

Data shows that sellers using Amazon Attribution see a 10% average increase in ROAS for external traffic campaigns . This tool helps identify which traffic sources offer the best value, playing a key role in broader ACoS reduction strategies discussed in Tip 6.

Tip 6: Cost Control Methods

Use these strategies to keep your margins safe in 2025:

Adjust Budgets for Underperforming Campaigns

For campaigns running 30% below your target ACoS, cut budgets by 50%. This reduces losses while still gathering useful data . Set daily budgets to 1.5–2x your target ACoS using Amazon's updated tools.

Pause Low-ROAS Campaigns

Automatically stop campaigns with a ROAS below 3:1 that have been underperforming for more than 7 days. This ensures you're only spending on campaigns that are profitable. Many users have seen a 30% boost in overall profitability with this method . Always wait until a campaign has at least 100 clicks before making this decision.

Dynamic Budget Adjustments

Amazon's 2025 advertising console makes it easier to adjust budgets based on performance:

• Scaling Budgets: Increase daily budgets by 10% for campaigns that maintain a ROAS above 4:1 for a week. This can improve efficiency by 25% .

• Seasonal Tweaks: Adjust budgets by 20–30% during seasonal peaks, aligning with time-based strategies mentioned earlier.

• Portfolio Optimization: Use Amazon's AI tools to group related campaigns into portfolios for smarter, automated adjustments.

These methods help you manage spending effectively before considering expert assistance (discussed later).

Steps to Lower ACoS

Lowering your ACoS requires a systematic approach. By applying strategies like refining keywords (Tip 1) and implementing budget controls (Tip 6), sellers can work toward consistent and effective results.

Key Takeaways

Reducing ACoS effectively comes down to well-planned execution:

• Campaign Structure: Stick to a one-keyword-per-campaign setup (as mentioned in Tip 3) and separate brand from non-brand campaigns for clarity.

• Data-Driven Adjustments: Regularly track metrics like ROAS, CTR, and conversion rates to fine-tune your campaigns.

• Smart Tools: Leverage AI-based bid management tools but ensure human oversight to keep strategies aligned with your goals.

Regular Performance Reviews

Adopt a schedule for reviewing performance to stay on track:

• Weekly Reviews: Evaluate ACoS, identify new negative keywords, and make bid adjustments as needed.

• Monthly Analysis: Dive deeper into performance by assessing:

  • Budget allocation and its efficiency

  • Preparation for upcoming seasonal trends

  • Competitor strategies and positioning

  • Opportunities for improving product listings

When to Seek Professional Help

After implementing core strategies, professional PPC management can take your campaigns to the next level:

• Advanced Insights: Experts can analyze your campaigns to find hidden areas for improvement using cross-account data and market trends.

• Stay Updated: With Amazon's advertising features evolving - such as advanced audience targeting rolling out in 2025 - professionals stay informed and ensure your campaigns leverage the latest tools.

• Boost Efficiency: Studies show that professional management can improve efficiency by 18-30% .