1. A lot of people use PPC to run at breakeven or slightly negative just to fuel their sales & reviews, etc… so that their conversion rate gets better over time. As your conversion rate gets better over time, you start to earn a lower ACOS naturally. Sweet.
2. You want to make sure 2 things are in check. That your Negative Keywords are firing on all cylinders (Look once a week at your search terms and add any and all irrelevant terms – or use an automated tool to do this for you). Also, bid optimization. You don’t want your ACOS to happen to you, you want to control your own ACOS. So I would say, it’s totally fine to be at 68% ACOS right now if that’s your goal. Running through bid optimization on a regular basis helps keep your campaigns in check.
3. Make sure you’re doing RPSB (research peel stick & block). You want to start with an automatic campaign, find your converting terms, and then move those into an exact match manual campaign. (Research in auto, peel out winning terms, stick as exact match manual, and block it from appearing in the automatic campaign). Rinse and repeat. For extra fun, feel free to add in manual KW research with broad & phrase.
Check out our full blog post on ACoS.