Transcription: 

The next automation that we will discuss is the KeyWord Recycler.

KeyWord Recycler works on any keyword that has been paused for more than 7 days.

When a keyword is paused for more than 7 days, it’s mostly because of higher ACoS. This means that there are no more sales data coming in from Amazon.

The statistic received for the keyword after it has been paused for 7 days is final and will not change in the coming days.

So, what do we do based on your resulting ACoS, your bid, and your average cost-per-click received?

We will create a hypothesis. We calculate a lower bid that should move that keyword to a break-even or profitable ACoS, and we will test this hypothesis.

Assuming this hypothesis fails in the first test, we will withdraw the bid and create another hypothesis with a lower bid and test this hypothesis separately.

We will continue this segmented bidding and break it down all the way either to zero or until we find a bid that will make the specific keyword break-even or become profitable for you.

In my experience testing the KeyWord Recycler automation for a year, fifty percent of the keywords which I would have never ever run again because I couldn’t make any money with everything that I lost, have been recycled. I could find good keywords that kept generating sales, a break-even or  profit.

Update:

We used to have a delay of up to 9 days before we test a lower bid on a keyword. Keyword Guardian still does its job of pausing any keyword that moves above your ACoS threshold.

However, as soon as that keyword gets paused, Keyword Recycler kicks in straight away in order for you not to lose sales and too much visibility.

Say a keyword moved above your threshold; right away, Keyword Recycler kicks in and takes that keyword with an adjusted lower bid and tests it in a parallel test ad group.

In this way, the testing time is shortened. You will not have to wait 9 days recreating and driving the traffic that most keywords used to do, but you can keep the traffic going straight away knowing that we will keep your ACoS under control.