Imagine that you have a campaign whose objective is profitability, i.e. you are looking for the lowest possible advertising cost. For that you have defined a target ACOS of 5%. However, after 30 days, the ACOS of your campaign is close to 8%. What could you do to lower your ACOS?

The correct answer acknowledges that multiple factors influence ACOS and that a holistic approach is necessary. Each of the other options represents a valid strategy to reduce ACOS: grouping ads by strategy helps optimize bids and targeting; ensuring competitive product listings improves conversion rates, thereby lowering ACOS; and analyzing individual ad performance allows for pausing underperforming ads or optimizing their content. Increasing the daily budget, if limited, might seem counterintuitive for ACOS, but a limited budget can prevent ads from showing during peak conversion times, leading to missed opportunities and a higher ACOS on the limited conversions achieved. Therefore, addressing all these areas contributes to lowering ACOS.