Question: 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
High advertising cost of sales means ad spend is taking up a larger share of attributed sales. Decreasing bids can reduce the amount spent to win clicks for products that are not generating sales efficiently. Lower bids may help improve cost efficiency when the current bid level is driving expensive traffic. This adjustment should be reviewed with sales and conversion data to avoid reducing bids on products that still support strategic growth.
Why the other options are incorrect
Increase bids can raise spend further and may worsen ACOS if sales efficiency does not improve.
No bid adjustments ignores a controllable campaign setting that can help reduce inefficient spend.
Source for verification
https://advertising.amazon.com/library/guides/amazon-advertising-cost-of-sales-acos
https://advertising.amazon.com/library/guides/sponsored-products-best-practices
The answer(s) to the question is highlighted in the BOLD text above. You can also find more questions and answers related to the exams on the "Amazon Ads Campaign Optimization Certification" page.