How to Monitor Amazon PPC Advertising Series: 9 Key Factors?

By monitoring these key indicators, you can gain a deeper understanding of the performance of your Amazon sponsored advertising and adjust your strategy accordingly.
1. Advertising Sales Cost (ACOS)
Understanding ACOS is like mastering the pulse of your advertising campaign's profitability. It measures the ratio between advertising expenses and target sales, clearly demonstrating the direct impact of your advertising on revenue. The goal is to match your profit margin with ACOS - too high will erode profits; Too low may result in missing market share.
2. Click through rate (CTR)
The click through rate shows you the interests of customers. It represents the percentage of shoppers who click on the advertisement after seeing it. A low click through rate may mean that your advertisement does not match the target audience, or your keywords are not relevant enough. Adjust advertising copy or fine tune positioning to increase your click through rate.
3. Impressions
The display count calculates the number of times your advertisement is displayed, reflecting the coverage range of your advertising series. It is a quantitative measurement method that, when analyzed together with click through rates, can reveal the attractiveness of your advertisement. If the ad display frequency is high but the click through rate is low, then it is time to re-examine your positioning parameters.
4. Return on Advertising Spending (ROAS)
ROAS is an indicator that measures the effectiveness of your advertising spending relative to revenue.
It is more segmented than ACOS, providing you with the return you receive for every dollar spent. ROAS should be maximized to ensure that your investment produces the best results.
5. Return on Investment (ROI)
Although similar to ROAS, ROI has a broader perspective, taking into account all costs - not just advertising expenses - and taking into account the overall profitability of your advertising campaign. The Amazon advertising series with high ROI is a worthwhile investment for you.
6. Cost per click (CPC)
CPC provides the cost of a single ad click. This indicator helps manage bidding strategies and can be a key indicator of market competition intensity. Adjusting the CPC bid can optimize your advertising placement and performance.
7. Total sales and total expenses
The balance between total sales and total expenses is the ultimate indicator of your advertising campaign's health. Over time, these indicators should be beneficial for you, as sales exceed or increase in sync with advertising expenses.
8. Conversion rate
The conversion rate highlights the effectiveness of your advertisement in converting clicks into purchases. This indicator not only tells you whether customers feel your advertisement is clickable enough, but also whether they are convinced enough to make a purchase. Optimize your listing to improve conversion rates.
9. Advertising location
Your advertisement's placement on Amazon can significantly affect the effectiveness of the advertisement. High visibility locations can bring traffic and conversion, so understanding location dynamics and making competitive bids for high-quality locations is crucial.
Remember, monitoring these nine key indicators is not just about collecting data, but about making wise decisions to bring sales and growth to your business in Amazon's fiercely competitive market.
2、 A convenient tool for monitoring Amazon's PPC advertising series
Effectively monitoring Amazon's PPC advertising campaign may be a challenging task, but with the right tools and strategies, it can become a structured and insightful process. You can use the advertising console on the Amazon platform. Its reporting function provides you with direct insights into advertising series performance indicators, allowing for real-time monitoring and adjustment. This console provides comprehensive reports, including sales, display count, click through rate, click through cost, and ACOS. It displays this information in a user-friendly layout.
3、 Optimize your Amazon PPC advertising campaign
Once you have collected actionable data by carefully monitoring your Amazon PPC advertisements, the next crucial step is to utilize this data to optimize your advertising campaign. Whether it is poor visibility, low click through rates, ineffective traffic, or wasted advertising expenses, these problems can be effectively solved through correct optimization strategies.
Here are some methods you can take to improve your advertising campaign:
Adjust bid
Adjusting advertising creativity
Analyze advertising components
Optimize positioning
Highlight the most effective keywords
These general steps are the cornerstone of an effective optimization process that can lead to better advertising display, budget savings, creating more attractive content, and higher return on investment.
4、 The role of monitoring in adapting to Amazon PPC trends
Monitoring your Amazon ads not only enhances your current advertising campaign, but also prepares businesses for the future of online or e-commerce advertising. By closely monitoring your advertising performance, your business can quickly leverage emerging online advertising trends and maintain a leading position.
Do you want to always maintain a competitive advantage? Next, we will introduce four key trends that continuous monitoring can help you grasp.
1. Focus on automation and artificial intelligence insights
With the increasing prevalence of artificial intelligence and automation, monitoring enables advertisers to understand and utilize these complex tools. The insights obtained through close tracking enable AI driven advertising campaigns to be optimized, ensuring that they are both efficient and effective.
2. Evaluate the participation of video advertisements
As video advertising becomes a new standard of engagement, the role of monitoring is to carefully evaluate their impact. This involves evaluating viewing time, click through rates, and conversions to determine which narrative techniques resonate most with the audience.
3. Create a brand story that fits your needs
Brand narrative is an art that relies on adaptation. By monitoring the performance of narrative driven content, brands can continuously adjust their stories to reflect the changing preferences and behaviors of the audience.
4. Voice search response
Voice search is changing the way consumers interact with advertisements. Monitoring enables businesses to analyze voice search patterns and optimize their PPC advertising campaigns accordingly, ensuring that they meet the needs of consumers in this new search option.
5、 How to monitor common issues with Amazon advertising
How often should I check my Amazon PPC advertising series?
Ideally, check your PPC advertising series once a week to adapt to market changes and optimize bids, but for high budget or critical advertising series, pay closer attention.
What is a good ACOS for Amazon PPC?
A "good" ACOS varies by product and market, but typically, the goal is to maintain profitability below your profit margin percentage.
Is ACOS the most important indicator for monitoring Amazon advertising?
Although ACOS is crucial for understanding advertising profitability, no single indicator should be considered in isolation. A comprehensive approach that includes ACOS, TACOS, and other performance indicators is necessary.
What are the sponsored products on Amazon?
Sponsored products on Amazon are paid per click advertisements that allow sellers to promote individual product listings on Amazon's search results and product details pages. These advertisements increase visibility and sales potential by targeting customers who actively search for similar items.
How much should I spend on Amazon advertising?
Determining your Amazon advertising spending depends on your advertising cost of sales (ACOS) target, product profit margin, and overall marketing budget. This is a balance between spending enough to compete effectively without deeply eroding profits.
6. Where are Amazon ads displayed?
Amazon advertising can appear in several places, including on Amazon's search results page, on related product detail pages, on Amazon's homepage, and on other websites and applications owned by Amazon or its partners. The advertising placement depends on the type of advertising campaign you choose, such as sponsored brand, sponsored display, or sponsored product advertising.
How effective is Amazon advertising?
The effectiveness of Amazon advertising varies depending on product category, competitors, and the management of advertising campaigns, but when targeted positioning, bidding, and optimization strategies are implemented, they can be very effective in increasing product visibility, driving sales, and increasing natural ranking.
According to Statista's report, Amazon's global advertising revenue reached $38 billion in 2022, almost twice that of 2020. In addition, the Influencer Marketing Hub pointed out that the average cost per click (CPC) of Amazon advertising in the United States in 2023 was $0.91. These data highlight the growing effectiveness and importance of Amazon's advertising platform.