Struggling with Daraz sponsored products performance lately?

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Karan Sharma Author
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1 day ago Asked
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I've been running Daraz ads for a while now, but lately, my sponsored products campaigns seem to be underperforming. I'm seeing a high ACOS despite decent impressions and clicks.

Here's a snippet from my recent campaign report:

Daraz Campaign Report (Last 7 Days):
  Campaign ID: #DRZ-SP-12345
  Impressions: 45,870
  Clicks: 1,230
  Spend: PKR 8,500
  Sales: PKR 15,200
  ACOS: 55.92%  (Target: < 30%)
  ROAS: 1.78

Any tips on how to optimize Daraz sponsored products for better ROAS? Or common pitfalls I might be missing? Thanks in advance!

daraz Ads ecommerce sponsored products

1 Answers

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Leonardo Ramirez
Answered 1 day ago
Hello Karan Sharma, Thanks for sharing your campaign data. "Struggling" might be a strong word, but I understand the pain of a 55% ACOS when you're targeting below 30%. That ROAS of 1.78 shows sales are happening, but the ad spend is definitely eating too much into your margins. Let's dive into some practical steps to improve your Daraz sponsored products performance.
  • Refine Your Bid Strategy: Given the high ACOS, your current bids are likely too aggressive for certain keywords or products. Dive into your search term report. Identify keywords that are generating clicks and spend but not converting, or converting at a very high cost. Reduce bids on these or pause them entirely. Consider implementing a tiered bid approach based on keyword performance and product profitability.
  • Enhance Product Listing Optimization (PLO): High impressions and clicks with high ACOS often point to a conversion issue at the product page level. Ensure your product titles are keyword-rich and compelling, descriptions are detailed and persuasive, and images are high-quality, showcasing the product effectively. A strong product page experience is critical for converting ad clicks into sales, which directly impacts your effective ACOS.
  • Leverage Negative Keywords Aggressively: Continuously audit your search term report for irrelevant searches that are triggering your ads. Add these terms as negative keywords to prevent wasted ad spend. This is a quick win for improving click quality and reducing non-converting traffic.
  • Segment Campaigns for Better Control: If all your sponsored products are in one campaign, consider segmenting them. You could create campaigns for 'Top Sellers', 'New Arrivals', or 'High-Margin Products'. This allows for more granular budget allocation and specific bid adjustments based on product performance and strategic goals.
  • Monitor Competitor Pricing & Offers: On a marketplace like Daraz, competitive pricing and attractive offers are paramount. Even with great ads, if your competitors are consistently offering better deals, your conversion rates will suffer, driving up your ACOS.
What kind of keyword match types are you primarily using in your current campaigns?

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