ACoS (Advertising Cost of Sales) tells you how much you spend on ads for every rupee of ad sales. When it creeps up, most sellers cut bids everywhere and lose sales. A better approach is to find the leaks.

1. Harvest and negate search terms weekly

Download the search term report. Move converting terms into exact-match campaigns and add terms with clicks but no orders as negative keywords.

2. Separate research and performance campaigns

Auto and broad campaigns are for discovery. Exact-match campaigns are for profit. Mixing them makes it impossible to control bids.

3. Fix the listing before raising bids

If your conversion rate is below category average, no bid strategy will save the ACoS. Improve main images, the first three bullet points and A+ content.

4. Use placement bid adjustments

Check how top-of-search performs against product pages. Increase the placement that converts and lower the base bid.

5. Watch TACoS, not just ACoS

TACoS compares ad spend with total sales. If TACoS is falling while sales grow, your ads are building organic rank, and a slightly higher ACoS may be worth it.

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