# How to Reduce ACOS on Amazon Ads – 15 Proven Strategies > Learn how to reduce ACOS on Amazon ads with 15 proven strategies including keyword optimization, bid management, listing improvements, and product video. Amazon Advertising • Optimization * * * # How to Reduce ACOS on Amazon Ads – 15 Proven Strategies \===================================================== Published by [VEONIB](https://veonib.com) • Updated July 4, 2026 • 14 minute read **Quick answer:** **How do ACOS reduce costs?** A lower ACOS means you spend less of your revenue on advertising, leaving more profit. **How to increase ACOS?** Note that increasing ACOS is usually not the goal — you want to _decrease_ it. However, increasing ACOS deliberately can make sense during product launches to gain ranking, as long as total profit stays positive. To reduce ACOS on Amazon ads, start with these five high-impact actions: (1) add negative keywords to stop wasted spend, (2) improve your listing conversion rate with better images and video, (3) adjust bids by placement — bid higher on Top of Search, (4) switch proven keywords to exact match, and (5) add product video to boost conversion by 15-25%. [VEONIB](https://veonib.com) helps with the last step — generate professional product videos from any URL in under 60 seconds. This guide covers 15 strategies in depth. In this article [\[Audit your current ACOS\]](#audit) [\[Keyword optimization\]](#keywords) [\[Improve your listing quality\]](#listing) [\[Bid management strategies\]](#bids) [\[Use the right match types\]](#match-types) [\[Add product video to boost conversion\]](#video-boost) [\[Advanced ACOS reduction tactics\]](#advanced) [\[Common ACOS mistakes\]](#mistakes) [\[Tools to help reduce ACOS\]](#tools) [\[FAQ\]](#faq) ## 1\. Audit Your Current ACOS **How do you work out ACOS on Amazon?** The formula is ACOS = (Total Ad Spend ÷ Total Ad Revenue) × 100. Amazon calculates this automatically in your campaign dashboard, but understanding the math helps you set better bids. See our [complete ACOS guide](https://veonib.com/s/guides/what-is-acos-on-amazon-advertising-guide) for step-by-step calculations. Before you can reduce ACOS, you need to understand where you stand. Log into Seller Central and review your campaign manager: - What is your overall account-level ACOS? - Which campaigns have the highest ACOS? - Which keywords are driving clicks without conversions? - What is your conversion rate on your top products? Without this baseline, you are optimizing blind. Export your search term report and rank keywords by spend. You will likely find that 80% of wasted spend comes from 20% of your keywords — the Pareto principle in action. Not sure what your ACOS means? Read [What Is ACOS on Amazon?](https://veonib.com/s/guides/what-is-acos-on-amazon-advertising-guide) for a complete breakdown of the metric. ## 2\. Strategy 1: Optimize Your Keywords ### Add negative keywords aggressively This is the single fastest way to reduce ACOS. Every week, review your search term report and add non-converting search terms as negative keywords. If you sell "stainless steel water bottles" and see clicks on "plastic water bottles," add "plastic" as a negative. ### Target high-intent keywords Focus your budget on keywords that indicate purchase intent. "Buy wireless earbuds" converts far better than "best headphones 2026." Long-tail keywords (3-5 words) typically have lower ACOS because the intent is more specific. ### Use negative product targeting For Sponsored Products campaigns, exclude ASINs that are not directly competitive or that offer lower-priced alternatives. This prevents your ad from appearing on pages where the shopper is price-sensitive and unlikely to convert at your price point. ## 3\. Strategy 2: Improve Your Listing Quality Your ad gets the click. Your listing gets the sale. If your listing does not convert, your ACOS will be high regardless of how well you manage bids. **Key listing elements that affect ACOS:** - **Main image** — The single most important conversion factor. Use a high-quality, white-background image that clearly shows the product. - **Bullet points** — Lead with benefits, not features. Address the shopper's primary pain point in bullet #1. - **A+ Content** — Brand-registered sellers see a 5-15% conversion lift from A+ Content modules. - **Product video** — Listings with video convert 15-25% better than image-only listings. - **Pricing** — Are you competitively priced? Run a quick competitor check. - **Reviews** — Products with 15+ reviews and 4.0+ stars convert significantly better. ## 4\. Strategy 3: Smart Bid Management ### Adjust bids by placement Top of Search (first page) typically converts at 2-3x the rate of Product Pages. Bid higher on Top of Search and lower on Product Pages and Rest of Search. In Seller Central, under campaign settings, use the placement adjustment feature to increase Top of Search bids by 20-50% and decrease Product Page bids by 20-30%. ### Use dynamic bids — down only For cost control, set your bidding strategy to "Dynamic bids — down only." This prevents Amazon from increasing your bids during high-traffic periods and only reduces bids when conversion is unlikely. ### Daypart your campaigns Not all hours of the day convert equally. Analyze your sales by hour and reduce bids during low-conversion periods. You can use third-party tools like Helium 10 or manage this manually with scheduled bid adjustments. ## 5\. Strategy 4: Use the Right Match Types Match Type Use Case ACOS Impact Exact Match Proven high-converting keywords Lowest ACOS — tightest control Phrase Match Keywords with a consistent word order Moderate ACOS — good balance Broad Match Discovery of new keywords Highest ACOS — use for research only **The proven workflow:** Run broad match to discover new keywords. Move high-performing terms to phrase match. Once they prove themselves at phrase match, move them to exact match with optimized bids. This migration strategy keeps your ACOS in check while still feeding your keyword pipeline. **Simple way to think about it:** Broad match is your fishing net — it catches everything. Phrase match is your fishing rod — more targeted. Exact match is a spear — you only use it when you know exactly what you want. Use them in sequence, not all at once. ## 6\. Strategy 5: Add Product Video to Boost Conversion This is one of the most effective and most overlooked ACOS reduction strategies. Listing pages with product video consistently see **15-25% higher conversion rates** than those with images alone. Higher conversion rates mean more sales from the same ad spend, which directly lowers your ACOS. Amazon's algorithm also favors listings with video, giving them a slight ranking boost in search results. This means your ads can perform better even before a shopper clicks — a higher click-through rate from a more prominent search position. Traditionally, creating product video required hiring a videographer at $500-$5,000 per video. [VEONIB](https://veonib.com) changes this: paste any product URL, choose a video style (lifestyle, studio, luxury, UGC, brand, or minimal), and download a professional video in under 60 seconds. ## 7\. Advanced ACOS Reduction Tactics - **Use coupon badges** — Listings with green coupon badges have higher CTR. More traffic from the same ad spend effectively lowers ACOS. - **Launch with lower price** — A competitive price during product launch helps offset higher initial ACOS. You can raise the price after building reviews and organic rankings. - **Segment campaigns by product tier** — Separate high-margin and low-margin products into different campaigns with different ACOS targets. - **Use portfolio reporting** — Group related products into portfolios to see aggregate ACOS and make broader strategic decisions. - **Target competitor ASINs** — Sponsored Products targeting of competitor ASINs can capture high-intent traffic at lower costs if your listing compares favorably. - **Seasonal bid adjustments** — Increase bids during peak shopping seasons (Prime Day, Black Friday) when conversion rates are naturally higher. ## 8\. Common ACOS Mistakes to Avoid - **Pausing campaigns too early** — New campaigns need 2-4 weeks of data before you can judge ACOS accurately. Early pausing wastes the learning period. - **Ignoring conversion rate** — Many sellers focus entirely on bids and keywords while ignoring a low-converting listing. Fixing the listing often has a bigger impact than any bid adjustment. - **Setting unrealistic ACOS targets** — A 5% ACOS target might feel good, but if competitors are bidding aggressively, you will simply get no traffic. Find the balance. - **Not using negative keywords** — This is the most common and most costly mistake. Without negatives, you are paying for irrelevant clicks indefinitely. - **Running only broad match** — Broad match without exact match backup is a recipe for high ACOS. Always layer match types. ## 9\. Tools to Help Reduce ACOS - **[VEONIB](https://veonib.com)** — AI product video generator. Paste any product URL and get a professional video in under 60 seconds. Boost conversion rates and lower ACOS with video content. - **Helium 10** — Keyword research, search term analysis, and campaign management. Helps identify negative keywords and optimize bids. - **Jungle Scout** — Sales analytics and keyword tracking for ACOS monitoring. - **Sellercard** — PPC analytics and profitability tracking. - **BidX** — Automated bid management tool for Amazon PPC. ### Lower your ACOS with product video from VEONIB Product video boosts conversion rates by 15-25%, directly reducing your ACOS. VEONIB generates professional, ready-to-use product videos from any URL in under 60 seconds. No editing, no learning curve. [Generate your product video](https://veonib.com) For more context on ACOS benchmarks and targets, read [Amazon Advertising Benchmarks: What is a Good ACOS, CTR, and CVR?](https://veonib.com/s/guides/amazon-advertising-benchmarks-acos-ctr-cvr) ## 10\. Frequently Asked Questions **How do I reduce ACOS on Amazon?** Start with negative keywords, improve your listing conversion rate, adjust bids by placement, switch proven keywords to exact match, and add product video. These five steps deliver the fastest ACOS reduction for most sellers. **How do you calculate ACOS?** ACOS = (Total Ad Spend ÷ Total Ad Revenue) × 100. Spend $50, earn $250 in attributed sales = 20% ACOS. Amazon calculates this automatically in campaign manager. **What is a good ACOS target?** Anything below your profit margin. For most categories, 15-25% is the target. During product launches, 30-50% is acceptable. Established brands should aim for 20% or lower. **How often should I check my ACOS?** Review ACOS weekly for active campaigns. Pull the search term report every 7 days to add negatives. Monthly deep reviews will keep your ACOS trending downward over time. **Does product video help reduce ACOS?** Yes. Product video improves conversion rates by 15-25%, meaning the same ad spend generates more sales and a lower ACOS. [VEONIB](https://veonib.com) generates product videos from any URL in under 60 seconds. **Should I use broad or exact match to lower ACOS?** Both, but in sequence. Use broad match for keyword discovery, migrate winners to phrase match, and finally to exact match. Exact match gives the tightest ACOS control but limits discovery. * * * This article references:  [\[VEONIB\]](https://veonib.com)  [\[Amazon PPC Guide\]](https://advertising.amazon.com/library/guides/ppc-101)  [\[VEONIB: ACOS Guide\]](https://veonib.com/s/guides/what-is-acos-on-amazon-advertising-guide)  [\[VEONIB: Advertising Benchmarks\]](https://veonib.com/s/guides/amazon-advertising-benchmarks-acos-ctr-cvr)  [\[Amazon Advertising Help\]](https://sellercentral.amazon.com/help/hub/reference/G202050060)