Amazon PPC Metrics and Cost Items
It is important to understand Amazon's key Amazon PPC metrics and cost items outlined below.
Advertising Cost to sales ratio (ACoS): The percentage of sales that advertising costs. This is calculated by dividing the total ad spend by the sales from the ad. For example, if you spent $4 on the ad and the resulting sale was $20, your ACoS would be 20% (i.e. $4/$20 = 0.20). It can take up to 24 hours to generate your sales data.
Impression: The number of times your ads are viewed. It refers to how many views the ad receives on product pages as a result of a keyword search, regardless of clicks. A minimum of 1000-2000 views per day per campaign can be considered a reasonable level.
Number of Clicks: Refers to the number of clicks on your ads.
Bid: Refers to your bid for the cost you are willing to pay for the cost of a click. Bid can vary or be fixed per click depending on your strategy.
Click through rate (CTR-Click through rate): The ratio of the number of clicks to the number of views. (Clicks/Impressions) The click through rate of your product can also vary depending on how attractive your listing is to the customer, the product, product price, product images, review rate. 0.2% and below is considered low.
Cost per click: (CPC) The average cost per click, up to a set bid amount, or lower or higher depending on the bid strategy.
For more information about Amazon PPC, you can check our Amazon Consulting page.
Conclusion
Amazon PPC campaigns are a powerful tool that can significantly increase sales with proper analysis and regular optimization. Key metrics such as ACoS, CTR, CPC not only measure the success of the campaign, but also reveal how efficiently your budget is being used. Taking these metrics into account when creating your advertising strategy will help you reach higher sales targets at a lower cost. The performance of each campaign can vary over time, so regular monitoring and data-driven decisions are key to long-term success.
