ACoS can fall if you pause generic campaigns and serve only branded demand, even while new customer acquisition weakens. Examine each query and ASIN against contribution before lowering bids across the account.
Separate the drivers
As a simplified diagnostic, ACoS equals CPC divided by click-to-order conversion times attributed revenue per order. Real reporting also needs attribution windows, order mix and delayed sales.
An actionable weekly review
Separate branded, generic, competitor and product targeting. Audit search terms at adequate click and order volume. Exclude clearly irrelevant exact terms; a negative phrase may also remove useful variants. Move validated queries into controllable targets and preserve a capped discovery budget. Change one important variable at a time and compare total contribution, not campaign ACoS alone.
Use the PPC auction guide, Search Query Performance and incrementality to check the result. Our PPC team can review the search term report with you.
