Why SD Cost Control Campaigns May Not Be Worth the Investment: Insights from a 4-Week Test
✅I tested the SD cost control feature for four weeks and am eager to share my findings.
✅I created two types of SD cost control campaigns: one for product targeting and the other for views retargeting.
✅Over the past four weeks, these campaigns generated 50 orders with an ACOS of 50.95%. Of these, 30 orders were NTB, and the CVR was close to 8%.
✅At first glance, these numbers seem decent, but they are not, and I will explain why in detail.
✅When you create these campaigns and go through the targeting, you will find multiple irrelevant targets added. For instance, my product was shampoo, but Amazon added targeting for the cough syrup category.
✅All these irrelevant targets are added by Amazon. These campaigns display a warning below the targeting section stating, “When Cost Control is active, we may add targets to improve performance while the campaign is running.”
✅Amazon regularly adds different targets and does not consider your campaign structure. It will add category, audience, and contextual targets under the same ad group.
✅These campaigns have a low ACOS because they start targeting relevant audiences from other traditional SD campaigns, which causes a decline in the performance of those other SD category or view remarketing campaigns.
✅We don’t have much control over these campaigns since 95% of the targets added by Amazon are irrelevant.
✅I do not recommend running SD cost control campaigns unless you are prepared to increase your wasted spend.
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