Why Ad Volume Doesn't Scale Even with Good ACoS Performance

Even when Advertising Cost of Sale (ACoS) shows good performance, ad volume may not immediately increase. DeepBI's strategy involves a comprehensive evaluation of multiple metrics to ensure the overall effectiveness and sustainable growth of ad spend, rather than focusing solely on a single indicator.

Identifying and Concentrating on Quality Traffic

DeepBI's "Four-Layer Traffic Funnel" mechanism is designed to progressively filter for high-quality traffic. In the final "Scaling Layer," the system concentrates resources to drive growth for the quality traffic identified through the first three layers. If the system has not yet identified enough sustainable, scalable quality traffic, it may not proceed with large-scale ad scaling, even if the current ACoS is low. This approach prevents ineffective investment in traffic that leads to incidental conversions.

Quantified Advertising and Overall Benefit Considerations

DeepBI's "Quantified Advertising" system automatically adjusts ad campaign bids and budgets daily through its "Dynamic Parameter Adjustment Mechanism." Its core objective is to continuously identify cost-effective traffic through detailed breakdown and dynamic adjustments, maximizing ad return on investment (ROI) and preventing losses from indiscriminate ad spending.

ACoS is not the sole metric for evaluating ad effectiveness. When developing ad strategies, DeepBI also incorporates metrics such as product profit, click-through rate (CTR), and conversion rate (CVR) to achieve overall business objectives. Overly strict ACoS control might lead to missed growth opportunities, but the system also avoids blind scaling in highly uncertain situations. Furthermore, one of DeepBI's core missions is to help sellers reduce their Total Advertising Cost of Sale (TACoS) by improving organic listing rankings and conversion rates, thereby decreasing reliance on paid traffic. This indicates that the system evaluates ad investments from a broader, more holistic perspective.

Summary

DeepBI's strategy relies on data-driven insights for refined management, ensuring that ad investments yield maximum returns and sustainable growth, rather than solely pursuing the optimization of a single metric.