Pausing your Amazon advertising campaign for high ACoS seems like a quick solution, but wait! In Amazon PPC advertising, pausing campaigns can feel like a quick fix for high Amazon ACoS or low conversion rates. But before you hit the pause button, consider that pausing campaigns can have hidden outcomes that impact not just your Amazon PPC ad performance, but your overall sales and profitability. Let’s explore what happens when you pause your Amazon advertising campaign and how it affects your sales, total sales, and TACoS.
In this blog you will get an explanation of how pausing Amazon ads campaigns can impact your sales and TACoS. Discover smarter ways to optimize your Amazon ads campaigns without hitting the pause button.
1. Does Amazon Campaign Always Provide Right Data?
Amazon PPC data provides valuable insights but has limitations. Factors like attribution models, data lag, errors, seasonal trends, ad fraud, and interpretation affect its accuracy. Careful analysis and cross-referencing with other data sources are essential for informed decision-making.
But by considering the data from only Amazon ads campaigns is not a good practice to pause an Amazon ads. You have to cross check with you total business sales that if your sales ultimately increased or not. Then you can make a decision to make the campaign pause or not.
For example:
You can see here one of my sponsored product campaigns is showing high ACoS with lower sales for a product for a few days. Why should we not just consider the PPC data? The data you can see today can be updated next day or next 2 days even after a week. So by considering data provided by Amazon ads campaign is not always right.
2. Why Sellers Pause Amazon Ads?
Sometimes, Amazon sellers pause their Amazon advertising campaign for different reasons. The question is should you run always-on campaigns on Amazon? Or should you stop the bad performing PPC Ads? Let’s find out here!
i) Amazon Ads High ACoS
Maybe the campaign that you are running for a long time and which is helping you to generate sales, is going with higher ACoS for a few days or weeks. Which is making sellers think about pausing a campaign. Normally for each Amazon Ads, 20% to 25% is a good ACOS if the item’s pricing and profitability is good.
ii) High Spending on Amazon Ads
Sometimes Amazon sellers want to spend their Amazon ad campaign budget elsewhere in any new campaigns,to improve any other points related to Amazon or off Amazon.
iii) Changing Amazon Ads Strategy
Amazon sellers may rethink their advertising strategy. They would like to try any new strategy for any different points.
iv) Lower Sales Might Cause To Stop Amazon PPC Ads
Think of your Amazon advertising campaigns as spotlights shining on your products. When you turn off these spotlights, it’s like dimming the lights on your products. Fewer people see them, which means fewer clicks, fewer purchases, and ultimately, less money coming in.
For example, if you stop promoting your items, they might get lost in the crowd of other products on Amazon. So even though you’re saving money on ads, you’re also losing out on potential sales.
v) Higher TACoS Cause for Pausing Amazon Ads Campaign
Don’t judge your Amazon ads campaign just by ACoS! Think bigger. TACoS (Total Advertising Cost of Sale) shows you the full picture, including both ad cost and total sales. Just focusing on ACoS might make you think you’re losing, but remember, ads also boost organic sales and brand awareness over time. So, play the long game and look at the bigger picture with TACoS! When you pause your Amazon ads, you might think you’re spending less on advertising, so TACoS should go down, right? Not necessarily.
Here’s the twist: when your Amazon ads are off, you’re not making as many sales. So even though you’re spending less on ads, your advertising costs as a percentage of your sales revenue might actually go up. This can make it seem like your ads are less effective than they really are, which can mess up your advertising plans.
These are the basic reasons for the decision to pause an Amazon ads campaign by Amazon sellers. But what seems like a break can actually shake things up quite a bit.
3. Effects of Pausing Amazon Ads Campaign
Here are a few more impacts that we need to keep considering while you are going to decide to pause a campaign –
i) Impact On Amazon Organic Sales
Now, let’s talk about organic growth – the sales you get without actively promoting your products. When you pause Amazon ads, your organic sales might take a hit too. Why? Because without ads to boost visibility, fewer people stumble upon your products organically. This further impacts your overall sales performance. With reduced visibility, fewer customers stumble upon listings naturally, resulting in decreased organic traffic and sales. This decline in performance can also impact a product’s ranking within Amazon’s search results, making it harder to regain momentum once ads are resumed.
ii) Cause of Amazon Sales Hijacking
Amazon Defensive Display Ads are used by sellers to defend their market share and brand against competitors on the platform. They target competitor listing details page, audiences, to hijack traffic and sales to increase visibility, and highlight competitive pricing or offers.
So if you stop your Amazon Sponsored Display defensive campaign, competitors will target you to hijack your traffic and your sales may go down. So though if the ACoS of Sponsored Display defensive campaigns go with higher ACoS, ultimately it will help you to prevent your sales drop.
iii) Effect On Amazon ACoS and TACoS
Sometimes Amazon sellers may see that some campaigns are going with high ACoS for a few times or weeks and take the decision to pause that campaign. But this is not really happening if you analyze the overall performance.
Let’s explain this:
Here a campaign is running with higher ACoS for the last few weeks, but did not pause this.
Why? Because the keywords which we targeted in the campaign are ultimately helping us to get organic rank and sales. Which is ultimately helping us to keep our total sales and TACoS in under control. So taking decisions by considering only ACoS is not always good for you.
iv) Product Ranking Effect on Amazon A10 Algorithm
Amazon’s A9 algorithm considers sales velocity as a key ranking factor. Pausing Amazon advertising campaigns effectively halts sales momentum, potentially leading to a drop in organic ranking for your products. This can create a vicious cycle: decreased visibility leads to fewer sales, further justifying the pause, and so on. If you want to know more you can check our detailed blog on this. “Boosting Your Product Rankings on Amazon | Unlocking the Secrets of the Amazon A10 Algorithm“.
v) Amazon Brand Awareness Losing
Pausing Amazon Ads campaigns means your brand disappears from search results, affecting brand awareness and trust. This can be particularly detrimental for new or lesser-known brands that rely on ads to gain visibility and establish themselves.
vi) Amazon Ad Campaign Bidding Challenge
When you resume a paused campaign, the bidding algorithm essentially starts afresh. You might face higher competition and inflated bids, impacting your ACoS and TACoS in the short term.
vii) Missed Amazon Sales Opportunity
Pausing campaigns during high-demand periods like holidays or seasonal surges can lead to missed sales opportunities. Even if your ACoS is high during these times, the overall revenue generated might be crucial for your business goals.
4. Should You Stop Amazon Ads Campaign?
We have seen what can happen if we pause any Amazon ad campaign and what is the overall impact on the whole Amazon business.
Now we will see whether we should stop the campaign or not?
Based on the above discussion we suggest not stopping the campaign by considering all of the Amazon matrices that we consider.
5. Lower Performance in Amazon Ad Campaigns?
When faced with underperforming Amazon advertising campaigns, Amazon sellers often struggle with the decision of whether to pause or continue optimizing their ads.
To help you navigate this confusion, Instead of hitting the pause button, here are some key Amazon ads campaign optimization hacks to consider:
- Try Different Amazon Campaign Types: Strategically try different types of campaigns for your product to maximize their effectiveness and impact on potential customers.
- Prevent Amazon Sales Hijacking: Safeguard your listing’s performance by implementing measures to prevent competitors from stealing your sales. So, we suggest that you can focus on Sponsored Display Ad to safeguard your listing.
- Analyze Amazon Sales Drop Reasons: If you experience a drop in sales, conduct a thorough analysis to pinpoint the underlying reasons and take targeted actions to address them
- Amazon ad campaigns bids optimization: Analyze your Amazon ad campaign data to identify inefficient keywords, adjust bids, and optimize targeting for better performance.
- Keep an Eye on Amazon ads Keywords: Even when your ads are paused, keep track of the keywords people use to find your products. This can help you stay relevant and visible when you restart your ads.
- Seasonal adjustments in Amazon ads: During low seasons, consider reducing campaign budgets instead of pausing entirely.
Remember that pausing campaigns is a last resort, not a routine action. Analyze the potential impact on your overall sales and brand health before hitting the stop button. Optimize, test, and adjust your campaigns for better performance, and reap the rewards of consistent advertising efforts on Amazon.
Insights!
We hope this blog will help you understand that pausing Amazon ads might seem like a quick fix, but it can have lasting effects on your sales and advertising costs. We tried to cover how pausing ads impacts your business and following these simple tips, you can make decisions to optimize your Amazon advertising strategy for long-term success. Happy selling!
If you need any help with the brand, you can contact us via email at info@ecomclips.com with this blog reference. You can also check out Our Website, www.ecomclips.com to get useful blogs that may help out your business a lot. Our team can provide you with the best solution of all time.
