While running an Amazon PPC campaign, it is vital to keep track of metrics and indicators that demonstrate how your ads are performing. Keep reading to see what they are!
If you are looking for a quick and effective way to boost your sales records, improve the visibility, and reach out to potential customers, running an Amazon PPC campaign should be your top choice.
Ever since Amazon offers its ad services, plenty of retailers have been taking advantage of this feature. However, jumping into Amazon PPC without understanding its working mechanism can make your ads end up being insufficient and costly.
So, how can you maximize the use of Amazon PPC campaigns? The answer is simple enough: you have to learn about their metrics. For starters, below is a comprehensive guide on the most important metrics to look for.
Top 8 Metrics In Amazon PPC Campaign You Must Know
Impressions tell you how many times your sponsored content has been displayed and shown to the target audience. Usually, the higher your impressions are, the more likely it is for your ads to drive traffic back to the landing page.
If the impressions are way lower than initially expected, you may have to change your bidding tactics. In most cases, it means that your bidding money is not enough to secure a spot, and you continuously get outbid by competitors.
Another reason explaining low impressions is failure to perform keyword research properly, as using the wrong phrases and terms limit the frequency of your ad placements.
Whatever the cause is, make sure to closely keep track of your impressions and make changes when necessary.
As the name already indicates, clicks refers to the number of times Amazon users have clicked on your ads and get redirected to the assigned landing page.
Ideally, the number of clicks you have should be in the same proportion with the number of impressions and sales you manage to earn. But in reality, the situation may end up different.
Sometimes, you may have a lot of clicks but few of them are converted. This means you have touched the right section of buyers and successfully convinced them to take a look at your listings, but the listings are not attractive enough to seal the deal.
The best way to solve this problem is by auditing your webpage and ensuring customers are bound to take action.
On the other hand, you have scattering clicks but most of them are profitable in the end. Here, the issue lies in how to increase the exposure of your ads. You might want to consider bidding more money or targeting a wider audience.
Clickthrough rate is the percentage of Amazon users who clicked on your ads after viewing them. You can calculate this metric by dividing the impressions by the clicks. If your ads are persuasive and compelling enough, feel free to expect a high rate. Vice versa, a low clickthrough rate could be traced back to low-quality ads.
But do not forget to take keywords and target audience into consideration. If you did not include the right keywords that reflect the interests of the audience and/or misevaluated the receiving end of your ads, chances are not many people would want to click on them.
Conversion rate refers to the percentage of people placing an order once they have seen your ads. On average, the conversion rate should be around 10%, which means for every 10 visitors, you gain a buyer.
Obviously, you would want to push your conversion rate as high as possible. But achieving this goal requires the coordination of multiple aspects, from listing optimization, exhaustive keyword research, correct targeting, and smart bidding.
Try not to gloss over any of these factors and see how they can all contribute to your ads being sufficient.
Cost per click
Cost per click is the amount of money you have to pay every time a shopper clicks on your sponsored content. Most retailers aim at minimizing this metric, as a low cost per click means the overall sales have balanced out the initial investment.
This goal usually goes hand in hand with maximizing the conversion rate, so make sure to go over the tactics above one more time.
Total spend means the amount of money you have spent on the entire advertising campaign. It can be tempting trying to lower this indicator as much as possible.
However, having a limited budget for your ads may prevent them from being featured to the right target audience, thus compromising the effectiveness. Vice versa, if it is too big, all the profit you have been gaining throughout the campaign will be useless.
Therefore, keep your total spend moderate.
Overall sales are both the ad-attributable and organic sales you have acquired once your ads are done. While only the former is qualified to illustrate how your ads have been doing, you should take both of these elements into account for a comprehensive ad analysis. Most experts agree that the desired ratio between ad-attributable and organic sales is 6:4.
Average Cost of Sale (ACoS)
Average Cost of Sale is calculated by dividing the total spend by the total sales. If you have a low ACoS, it means you have to spend just a little money for an order. But when the ACoS is too high, your ads have not been lucrative enough. The end goal is to keep your ACoS to a minimum if possible.
Keeping track of the aforementioned metrics allow you to have a basic understanding of how your ads are performing and whether they have been profitable.
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