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Controlling_ACOS_While_Selling_In_Beauty_Category

This presentation tackles the challenge of maintaining profitability while advertising in the competitive beauty category. ACOS (Advertising Cost of Sale) will be a central focus, with actionable strategies to keep it under control. You'll learn about effective campaign structures, budget optimization techniques, and creative tactics specifically tailored to the beauty market. By the end, you'll be equipped with valuable insights to maximize sales in the beauty category without sacrificing advertising efficiency.

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Controlling_ACOS_While_Selling_In_Beauty_Category

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  1. Controlling ACOS while selling in the beauty category Maria Rodriguez

  2. With the growing prevalence of internet access and extensive digital interconnectivity, online sales are emerging as a significant source of revenue for the beauty and personal care sector. In the United States in 2023, beauty products sold online generated approximately $86 billion, while personal care items generated nearly $54 billion in revenue.

  3. Beauty is one of the most popular categories on Amazon. According to Jungle Scout, beauty & personal care is the 2nd most popular category on Amazon and 23% of sellers have products listed within this category.

  4. Amazon has become increasingly competitive over the years to such an extent that the only way to enhance product views and boost brand recognition is through Advertising campaigns.

  5. Why is the ACoS so high and how can I reduce it? There is no universal benchmark for a “good” ACoS, as it depends on the business strategy. Various factors come into play, including the type of product and its associated profit margins. For instance, if your product boasts a 50% margin, you can comfortably tolerate a higher ACoS compared to one with a narrower 20% margin.

  6. 4 Tips to reduce Amazon ACoS and TACoS Tip 1: Focus on relevant keywords Focusing on the most relevant keywords will help your product show in front of the right audience. ● Conducting keyword research is the best way to identify the important keywords you want to target. There are several tools such as Amazon Brand analytics and external tools such as Helium 10 you can use to get good quality keywords. ●

  7. 4 Tips to reduce Amazon ACoS and TACoS Tip 2: Negative Keywords Negative keywords play a key role in keeping your ACoS low. They allow you to control what search terms not to serve ads for, which ultimately improves your profitability by focusing ad spend on relevant terms that are more likely to convert and drive sales.

  8. 4 Tips to reduce Amazon ACoS and TACoS Tip 3: Product Detail Page Optimization Amazon will use your product information to determine search relevancy. If this information isn’t relevant to the product someone is searching, you’re not going to earn that many conversions. Before activating your sponsored campaigns on Amazon, you need to make sure that the product information is relevant and helpful to your target audience. ● ●

  9. 4 Tips to reduce Amazon ACoS and TACoS Step 4: Effective bid management Effective bid management in Amazon PPC campaigns is essential for maximizing profitability. Strategically adjusting bids based on performance data, market dynamics, and campaign objectives as well as optimizing ad placements. will help drive desired outcomes effectively.

  10. Even though the adequacy of an ACoS depends on your marketing and business objectives, a low ACoS always means high profitability and a high ACoS low profitability. Usually, the objective is to push for low ACoS, unless there is a specific brand awareness or sell-out strategy.

  11. THANK YOU!

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