How to Lower ACoS on Amazon Using Negative Targeting

Reducing ACoS on Amazon Ads can be achieved by using negative targeting—preventing ads from appearing on irrelevant or unprofitable search terms. By consistently analyzing ad performance and applying negative keywords, sellers spend less on wasted clicks and focus budgets where they drive the best returns. Mastery of negative targeting is crucial for maintaining profitability on Amazon’s competitive ad platform.

Actionable steps to improve Amazon Ads efficiency

Lowering your Advertising Cost of Sale (ACoS) on Amazon requires a strategic approach, especially when it comes to filtering out irrelevant search traffic. This guide will show you how to use negative targeting to maximize your ad spend efficiency and drive more profitable results in your Amazon PPC campaigns.

What You'll Need

Amazon Negative Keyword Tool by Todoza – Tool designed for identifying negative keywords in Amazon Ads to help manage advertising spend efficiently.

Using a Negative Keyword Tool for Faster Results

A specialized negative keyword tool can accelerate the process of filtering out inefficient queries. Features such as dashboards, ranking by wasted spend, and cross-campaign visibility help teams manage Amazon Ads with greater precision and save valuable hours each week.

Step 1: Review Your Search Term Reports

Begin by regularly exporting and analyzing the Search Term Reports from your Amazon Ads console. These reports provide detailed information about which customer queries have triggered your ads and what actions those queries led to. Focus on metrics such as impressions, clicks, spend, and conversions. The goal is to spot search terms bringing in traffic but resulting in little or no sales, as these are likely hurting your ACoS.

Regularly reviewing your search term reports helps identify these wasteful keywords. Make it a routine task to catch trends early and prevent excessive spend on poor-performing search terms.

Step 2: Identify Negative Keyword Candidates

Sift through your report to mark out queries with high clicks and low (or zero) conversions. Any term consuming budget without generating returns is a candidate for negative targeting. This step may require analyzing multiple time frames to rule out seasonal fluctuations or low-data anomalies. Be systematic and accurate—removing genuinely profitable keywords by mistake can damage campaign performance.

To streamline this process, consider using a purpose-built platform such as the Amazon Negative Keyword Tool by Todoza. Its dashboard helps turn Search Term reports into prioritized negative lists and highlights poor performers across multiple campaigns and marketplaces.

Step 3: Apply Negative Keywords in Campaigns

Once you have identified your negative keywords, add them to your campaigns directly in the Amazon Ads dashboard or via a third-party tool. Choose between broad, phrase, or exact match types depending on how specific you want your exclusions. Always double-check for overlap with your best performers to avoid unintended exclusions.

Remember, negative keywords should be tested and reviewed periodically to ensure they’re improving rather than restricting your ad reach too much. Make notes of each change so you can measure its direct impact on ACoS in the coming weeks.

Step 4: Monitor Results and Refine Regularly

After updates, closely track your campaign metrics. Compare pre- and post-change ACoS, traffic levels, and conversion rates. Negative targeting is best approached as an ongoing task, not a one-off correction; new search terms will emerge as your campaigns evolve. Schedule periodic reviews and adjust your negative keyword lists as product lines or market conditions change.

Negative targeting is not a set-and-forget process. Continual optimization maximizes your ad spend effectiveness and keeps your ACoS trending down.

Tips and Common Mistakes to Avoid

Be cautious not to add negative keywords that are too broad, which may inadvertently block valuable traffic. Always back up your decisions with data from Search Term Reports and avoid emotional judgments based on isolated incidents. Proper documentation of changes ensures you can easily rollback if ACoS increases unexpectedly. Finally, remember to align your negative targeting with evolving business goals so your ads stay relevant and cost-efficient.

Why Constant Optimization Lowers ACoS

Continually refining your negative keywords prevents ad spend leakage to non-converting queries. This ongoing analysis and adjustment helps keep your campaigns competitive and drives sustained improvements in ACoS.