Amazon Ads Costing You Too Much?
If your Amazon Ads spend feels out of control, the issue usually isn’t ads themselves—it’s not knowing your ACOS and your break-even point. Once you know this number, you can make smarter decisions instead of guessing. 🔢 How to Calculate Your Break-Even ACOS Start with two numbers: - Book price - Royalty per sale Example: - Book price: $9.99 - Royalty: $4.00 Calculation: - 4 ÷ 9.99 = 0.40 - 0.40 × 100 = 40% ✅ Your break-even ACOS is 40% This means: - Below 40% → profitable - At 40% → break-even - Above 40% → losing money on that sale 🎯 What To Do With This Number Once you know your break-even ACOS: - This is the number you should aim to stay under in each campaign - It becomes your decision-making filter for scaling or pausing ads ⚖️ Being Over Break-Even Isn’t Always Bad An ACOS above your break-even point isn’t automatically a failure. Higher ACOS can still make sense if: - Ads are increasing visibility - You’re seeing organic sales lift - The book leads to series, bundles, or audiobooks The key question to ask: Is my goal pure ad profitability, or am I okay investing in ads if total sales (ads + organic) are profitable? Intent matters. 🔧 How I Tighten My Ad Campaigns To avoid wasting money, I rely on campaign budget rules. My approach: - Set a low daily budget per campaign (typically $10–$15) - Create a rule that: This tells Amazon: - “Sell my book aggressively when I’m not losing money” - “Stop immediately when performance slips” ✅ Final Takeaway If you’re running ads without knowing your: - Royalty - Break-even ACOS - Clear campaign goal You’re letting Amazon decide how much you spend. Control the numbers, and the ads start working for you instead of against you.