Amazon Ads Optimizer

Portfolio: [Product Line / Brand]
├── SP - Auto - Discovery
│   └── All match types enabled
│   └── Purpose: Find converting search terms
│   └── Budget: 20% of portfolio spend
│
├── SP - Manual - Exact
│   └── Graduated keywords from Auto + Broad
│   └── Purpose: Scale proven winners
│   └── Budget: 40% of portfolio spend
│   └── Bids: Highest (these are proven converters)
│
├── SP - Manual - Broad/Phrase
│   └── Research keywords + category terms
│   └── Purpose: Find new keyword opportunities
│   └── Budget: 20% of portfolio spend
│   └── Bids: Moderate
│
├── SP - Manual - Product Targeting
│   └── Competitor ASINs + Complementary products
│   └── Purpose: Conquest + cross-sell
│   └── Budget: 10% of portfolio spend
│
├── SB - Brand Defense
│   └── Branded keywords + Store Spotlight
│   └── Purpose: Protect brand searches
│   └── Budget: 5% of portfolio spend
│
└── SD - Retargeting
    └── Views remarketing + purchase remarketing
    └── Purpose: Recapture interested shoppers
    └── Budget: 5% of portfolio spend

Weekly cadence:

1. Download Search Term Report (last 14 days)
2. Filter for converting search terms:
   - Orders >= 2
   - ACOS <= target ACOS (e.g., 30%)
3. Add converting terms as EXACT match keywords in Manual Exact campaign
4. Set initial bid = average CPC from search term report + 20%
5. Add these same terms as NEGATIVE EXACT in Auto campaign
   (prevents Auto and Manual from competing)
6. For high-spend, no-conversion terms (spend > 2x product price, 0 orders):
   → Add as NEGATIVE EXACT in Auto campaign
   → Add as NEGATIVE PHRASE if pattern is clearly irrelevant

Repeat weekly. After 4 weeks, Manual Exact should capture 60-80% of conversions.

Daily/Weekly bid adjustments:

1. Pull keyword performance report (last 7-14 days)
2. Categorize keywords:

   High ACOS (>2x target):
   → If spend > $20 and 0 conversions: pause keyword
   → If some conversions: reduce bid by 20-30%
   → If new keyword (<14 days): give more time, reduce bid 10%

   At Target ACOS (0.8x-1.2x target):
   → Maintain current bids
   → Consider increasing bid 5-10% if impression share is low

   Below Target ACOS (<0.8x target):
   → Increase bid by 10-20% to capture more volume
   → Check if keyword is on page 1 (Top of Search placement)

   No Impressions:
   → Bid too low: increase by 50% or match suggested bid
   → If still no impressions after 7 days: check relevance

3. Adjust placement modifiers:
   - Top of Search: +25% to +100% (best conversion rates)
   - Product Pages: +0% to +50% (good for competitive terms)

Calculate and monitor these metrics:

ACOS = Ad Spend / Ad Revenue × 100
  Target varies by goal:
  - Launch phase: 50-100% (accept losses for ranking)
  - Growth phase: 25-40% (balance visibility and profit)
  - Profit phase: 15-25% (optimize for profitability)
  - Established: <15% (maximum efficiency)

TACOS = Total Ad Spend / Total Revenue × 100
  Why TACOS matters:
  - Includes organic revenue influenced by ads
  - Better indicator of overall advertising health
  - Target: 8-15% for most categories
  - Healthy sign: TACOS decreasing while revenue grows
    (means organic sales growing faster than ad spend)

Break-Even ACOS = Profit Margin %
  Example: Product price $30, cost $12, fees $8
  Profit before ads = $30 - $12 - $8 = $10
  Profit margin = $10 / $30 = 33%
  Break-even ACOS = 33%
  Target ACOS = 25% (to maintain 8% net margin)

Portfolio-Level Analysis:
  Total ad spend: $5,000/month
  Total ad revenue: $20,000/month (ACOS = 25%)
  Total organic revenue: $35,000/month
  Total revenue: $55,000/month
  TACOS = $5,000 / $55,000 = 9.1% ✅ Healthy

1. Export Search Term Report (60-90 days for statistical significance)

2. Identify Winners (add to Manual Exact):
   Criteria:
   - Orders >= 3
   - ACOS <= break-even ACOS
   - Not already in Manual campaigns
   Action: Add as Exact match, bid at avg CPC + 15%

3. Identify Losers (add as Negatives):
   Criteria:
   - Spend >= 2x product price
   - Orders = 0
   - Clicks >= 10 (enough data)
   Action: Add as Negative Exact (or Negative Phrase if pattern)

4. Identify Opportunities (add to Broad for testing):
   Criteria:
   - 1-2 orders
   - ACOS within 2x target
   - High click volume
   Action: Add to Broad campaign for more data, review in 2 weeks

5. Analyze patterns:
   - Are competitor brand terms converting? (conquest opportunity)
   - Are long-tail terms outperforming head terms? (expand)
   - Are irrelevant categories showing up? (negative at category level)

ACOS = (Ad Spend / Ad Revenue) × 100

ROAS = Ad Revenue / Ad Spend
     = 1 / (ACOS / 100)

TACOS = Total Ad Spend / Total Revenue × 100

Break-Even ACOS = ((Price - COGS - Amazon Fees) / Price) × 100

Target ACOS = Break-Even ACOS - Desired Net Margin %

CPC = Ad Spend / Clicks

CVR = Orders / Clicks × 100

CTR = Clicks / Impressions × 100

Impression Share = Your Impressions / Total Available Impressions × 100

Ad Revenue = Clicks × CVR × Avg Order Value

Required Budget = Target Impressions × CTR × CPC

User: "I'm launching a new kitchen gadget on Amazon. Set up my ad strategy."

Phase 1 (Weeks 1-4): Discovery & Ranking
  Campaign 1: SP Auto (all match types)
    Budget: $50/day | Bid: $0.75 | Strategy: Dynamic Down
    Purpose: Discover converting search terms

  Campaign 2: SP Manual Broad
    Budget: $30/day | Keywords: 20 category terms
    Bid: $0.65 | Strategy: Dynamic Down

  Target ACOS: 60-80% (accept higher ACOS for ranking)
  
Phase 2 (Weeks 5-8): Optimization
  - Harvest winners from Auto → Manual Exact
  - Add negatives for non-converters
  - Launch Sponsored Brands (Video format with demo)
  - Target ACOS: 35-45%

Phase 3 (Weeks 9-12): Profitability
  - Scale Manual Exact winners (increase bids 15%)
  - Reduce Auto budget by 50%
  - Launch Sponsored Display (views remarketing)
  - Target ACOS: 25-30%

Phase 4 (Ongoing): Maintenance
  - Weekly search term harvesting
  - Bi-weekly bid adjustments
  - Monthly negative keyword audit
  - Target ACOS: <25%
  - Monitor TACOS trend (should be declining)

User: "My ACOS is 45% but my break-even is 30%. Help me fix it."

Diagnosis:
1. Pull keyword-level data for last 30 days
2. Identify waste:
   - 15 keywords with >$50 spend, 0 orders → pause immediately
   - Saves ~$800/month in waste

3. Optimize bids:
   - 8 keywords with ACOS >60%: reduce bids by 30%
   - 12 keywords with ACOS 30-45%: reduce bids by 15%
   - 5 keywords with ACOS <20%: increase bids by 20% (scale winners)

4. Placement analysis:
   - Top of Search ACOS: 22% → increase modifier to +50%
   - Product Pages ACOS: 55% → set modifier to 0%

5. Structure fix:
   - Move top 10 exact match keywords to dedicated campaign
   - Set higher budget allocation (40%) to this campaign

Expected result: ACOS reduction from 45% → 28-32% within 4 weeks

User: "Run a search term analysis for my supplements brand."

Analysis (60-day data):

Winners (add to Manual Exact):
  "vitamin d3 5000 iu" → 45 orders, 18% ACOS → Exact bid $1.20
  "magnesium glycinate 400mg" → 32 orders, 22% ACOS → Exact bid $0.95
  "zinc supplement capsules" → 28 orders, 20% ACOS → Exact bid $0.85

Losers (add as Negatives):
  "vitamin d3 gummies" → $120 spend, 0 orders → Negative Exact
  "magnesium spray" → $85 spend, 0 orders → Negative Phrase
  "free vitamin samples" → $60 spend, 0 orders → Negative Phrase

Opportunities (test in Broad):
  "best magnesium for sleep" → 2 orders, 35% ACOS → Add to Broad
  "vitamin d winter supplement" → 1 order, 28% ACOS → Add to Broad

Patterns:
  - "Gummies" format terms waste budget (our product is capsules)
  - "For sleep" long-tail terms convert well → create sleep-focused ad group
  - Competitor brand "Nature Made" terms showing up → evaluate conquest campaign