Juan’s advertising goal is sales efficiency. What optimizations should he make to his campaign? Select all that apply.
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Correct answer: Decrease bids on keywords with low KENP reads or royalties, Decrease bids on keywords with high ACOS.
Why this is the answer
To optimize for sales efficiency, Juan should focus on reducing wasted spend and maximizing return on investment. Decreasing bids on keywords with low KENP reads or royalties (for Kindle campaigns) or high ACOS (Advertising Cost of Sale) directly addresses this. Low KENP reads/royalties indicate poor performance for the ad spend, and a high ACOS means the advertising cost is a large percentage of the sales revenue, reducing profitability. By lowering bids on these underperforming keywords, Juan reallocates budget to more efficient areas, improving overall sales efficiency. Increasing bids on keywords with high ACOS would worsen efficiency, and increasing bids on keywords with high impressions alone doesn't guarantee sales efficiency; impressions need to convert effectively.
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