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ACOS analysis

You will find in this article simple guidelines to help you with your ACOS target management

Before acting, make sure that the algorithm has learned the strategy. To do this, simply check if the last two weeks' ACOS is equal to the target ACOS.

Your goal will be different based on the results.

Case 1: Target ACOS > break-even point 

You will focus on going under the break-even point: Decrease your ACOS target by 3~5 points and wait until the algorithm reaches the target.

Case 2: Target ACOS = break-even point

From here on out, the urgency to reduce the ACOS is less important since you start to be profitable.

We suggest you decrease the target ACOS by 1~3 points each time (after each stabilization) up to your ACOS goal.

Case 3 : Target ACOS = ACOS goal

Now that you reached your ACOS goal, you may want to increase profitability.

Our algorithm already optimizes the bid for each Keyword for the ACOS target set, if the advertising stop growing, it often means that we are reaching the potential ad sales for this ACOS.

Luckily, ACOS alone doesn't mean anything! You can degrade your ACOS and be more profitable (You will find an article that will explain in detail mathematically how is it possible:  How to choose your ACOS target)

With this information in mind, you can slowly increase the ACOS target (by 1~3 points) and analyze the impact on your advertising sales volumes.