Your campaign reports show that you have products with high advertising cost of sales (ACOS). What bid adjustment should you make to optimize your campaigns?
- Increase bids on these products if they have high sales
- Make no bid adjustments as they will have no effect on this
- Decrease bids on these products to help reduce ACOS
Explanation:
The correct answer is ‘**Decrease bids on these products to help reduce ACOS**.’ If your campaign reports show products with high Advertising Cost of Sales (ACOS), this indicates that the cost of acquiring sales through advertising is relatively high compared to the revenue generated from those sales. To optimize your campaigns and reduce ACOS, it is advisable to decrease bids on these products. Lowering bids can help reduce the cost of each click, making the campaign more cost-efficient while maintaining visibility for the products. This bid adjustment strategy can help improve the profitability of your ads by ensuring you are not overspending on ads that are not generating enough sales. Increasing bids on products with high ACOS would only increase costs, and making no bid adjustments would likely allow the high ACOS to continue impacting the overall performance of the campaign.