Has anyone else seen dramatic increases in Amazon advertising costs?

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1

Compared to the early months this year, my Amazon advertising costs have increased considerably.

My Average Cost-per-click has more than doubled and my total spend has increased by multiples. My ACoS percentage has also been negatively affected.

I have been using the Bid+ tool (Raises bids in this campaign up to 50% more than your default bid when ads are eligible to show at the top of search results.). I believe that this may be one of the issues.

Has anyone else experienced anything similar?

2

Yes, many Amazon sellers have experienced similar increases in advertising costs over time. The rise in Average Cost-per-click (CPC) and ACoS percentage can be attributed to various factors, including increased competition, changes in customer behavior, and adjustments to Amazon’s algorithms and advertising platform.

Using the Bid+ tool, which raises bids for top-of-search placement, can indeed contribute to higher costs, especially if your competitors are also utilizing this feature. While Bid+ can improve visibility, it may lead to increased bids and higher costs for ad placements.

To address these issues, consider the following strategies:

  1. Campaign Optimization: Regularly review and optimize your ad campaigns, adjusting bids and keywords to improve efficiency and reduce unnecessary spending.
  2. Keyword Research: Conduct thorough keyword research to find relevant, high-converting keywords with lower competition.
  3. Negative Keywords: Use negative keywords to filter out irrelevant search terms and reduce wasted ad spend.
  4. Campaign Segmentation: Consider segmenting your campaigns based on product categories or performance to have more control over bids and budgets.
  5. Budget Management: Set daily or monthly budgets to limit your total advertising spend.
  6. Diversify Advertising Strategies: Explore other advertising options like Sponsored Brands or Sponsored Display to diversify your advertising efforts and potentially reach different customer segments.

Remember that advertising costs on Amazon can fluctuate, so staying vigilant and proactive with your advertising strategy is crucial to maintaining a healthy ACoS and driving profitable sales.