After reviewing the metrics of a Sponsored Products campaign, Jorge identified that the ACOS for many products was much higher than the category average. What action(s) could he take to address this?
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Correct answer: advertise the best sellers in their product catalog, remove the underperforming ASINs from their campaign.
Why this is the answer
To address a high ACOS (Advertising Cost of Sales), Jorge should focus on improving the efficiency of his campaign. Advertising best sellers in his product catalog is a good strategy because these products typically have higher conversion rates and better organic rankings, leading to more efficient ad spend and a lower ACOS. Removing underperforming ASINs (Amazon Standard Identification Numbers) from the campaign is also crucial. These products are likely consuming budget without generating sufficient sales, thus contributing to the high ACOS. By eliminating them, Jorge can reallocate budget to more profitable products. Neither of these alone would be sufficient; a combination of both strategies offers a comprehensive approach to optimizing campaign performance and reducing ACOS.
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