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Case Study

How We Cut ACoS From 42% to 18% in 90 Days: A Case Study

February 12, 2026·By mrdigit

When we onboarded this home kitchen brand in November 2025, their Amazon PPC account was bleeding money. Total ad spend: $28,000/month. ACoS: 42%. ROAS: 2.38x. Their previous agency had set up a basic auto/manual campaign structure three years ago and barely touched it since. Here is exactly what we did to cut ACoS to 18% in 90 days.

The Audit

Our initial audit revealed three critical problems. First, over $6,000/month was being wasted on irrelevant search terms that had never been negated. Second, their campaign structure lumped high-performing branded keywords with low-converting generic terms, making it impossible to set appropriate bids. Third, they had zero placement optimization — all bids were flat across all positions.

Week 1-2: Emergency Negation

We pulled 18 months of search term data and identified 847 search terms with zero conversions and at least $10 in spend. We negated all of them immediately at the campaign level. We also found 23 search terms with spend over $500 and zero sales — these alone accounted for $4,200/month in pure waste. This single action reduced wasted spend by approximately $8,500/month.

Week 3-4: Campaign Restructure

We broke their 4 campaigns into 16 targeted campaigns: branded exact match, branded broad match, top 30 exact match (non-branded), category phrase match, competitor targeting, auto (discovery only with heavy negatives), and separate Sponsored Brands and Sponsored Display campaigns. Each campaign now had appropriate budget limits and bid ranges.

Week 5-8: Bid Optimization

With clean campaign structures, we implemented our tiered bid rules: keywords with ACoS below target got bid increases of 10-15%, keywords with ACoS 1-2x target held steady, keywords 2-3x target got 15-20% decreases, and anything above 3x target with 30+ days of data got paused. We also activated placement multipliers: +40% for top-of-search on high-converting branded terms, which increased their visibility dramatically.

Week 9-12: Refinement

By week 9, ACoS had dropped to 22%. The final push to 18% came from three refinements: dayparting (reducing bids by 30% during low-converting hours identified through our time-of-day analysis), adding Sponsored Display retargeting for product page viewers (which ran at 8% ACoS), and launching a Sponsored Brands Video campaign targeting their top 10 keywords.

Results

After 90 days: ACoS dropped from 42% to 18%. Monthly ad spend dropped from $28,000 to $22,000 (we were spending less but better). Ad-attributed revenue increased from $66,600 to $122,200. Most importantly, the brand’s total revenue (organic + paid) grew 35% as improved ad efficiency boosted organic ranking.

ACoS reductionAmazon PPCcampaign restructurecase study