A failed Amazon PPC campaign is certainly concerning. It drains all of your client's time and financial efforts, but believing it is the end of your marketing campaign is wrong. There's always a way to find out the problem and redirect your strategies for improvement: looking at campaign metrics.
Tracking your client's campaign data will show you exactly what you need to do to make their Amazon PPC campaigns more successful. But here's the catch: there's quite a lot of data involved, and it can be overwhelming to understand at first. Which ones will they need to gain useful insight into the ad performance?
If you're planning to take Amazon PPC learning courses, this article is a great way to start! We've created a list of the most essential Amazon PPC performance metrics you'll need to make successful ad campaigns for your client's business.
When running an Amazon PPC campaign for your client, there are certain statistics you need to look at to ensure its effectiveness. This will give you the peace of mind you need when the first try doesn't work; the right data will help you bounce back and improve.
Let's discuss five important PPC campaign metrics to kickstart your new Amazon ad strategy!
Want to know (in detail) how attractive and engaging your client's ads are? Look at the Click-through Rate (CTR) metric. It measures how often online visitors are convinced to click their ad and learn more about your brand. Moreover, it assesses the ad's performance according to keyword relevance.
How to calculate your ad's CTR? Divide the total number of clicks by the impressions.
How to evaluate your ad's CTR? Use 0.4% as your basis for the average rate. Also, consider Amazon sales while evaluating this (a high CTR doesn't automatically increase sales).
How to improve CTR? Use relevant keywords and write compelling copies.
How much money does your client spend on their ads, and how does it affect the campaign? Those are the questions that the ACoS metric will answer. ACoS lets you see how effective the ads perform according to the ad spend. It helps you and your client ensure they're spending the right amounts on increasing ad performance and profitability.
How to calculate your ad's ACoS? Divide your ad spend by the ad revenue.
How to evaluate your ad's ACoS? A high ACoS indicates more ad spend than growing revenue. Consequently, they won't be very profitable, so aim to maintain a lower score.
How to improve ACoS? Optimize product listings and pages to ensure they comply with the algorithm and that the bid amount is appropriate.
Your client's ad might get a lot of clicks, but are they converting into sales? The Conversion Rate metric (CVR) will tell you that by measuring the percentage of orders made after consumers click on the ad. This will indicate whether your client's campaigns are engaging and relevant to their target market.
How to calculate your ad's CVR? Divide the number of orders received by the number of ad clicks.
How to evaluate your ad's CVR? 9.5% is the typical percentage of CVR on Amazon, but it may depend on the product type and category.
How to improve CVR? Produce well-optimized and relevant content highlighting appropriate, converting keywords. Also, be sure to get the target audience right.
The RoAS metric shows the opposite of the ACoS. It focuses on how much revenue your client's ad generated compared to how much they spent on it. This measurement indicates whether their Amazon campaign is worth investing in and how much ROI it can bring.
How to calculate your ad's RoAS? Divide your total sales by the total ad expenses.
How to evaluate your ad's RoAS? Unlike ACoS, the RoAS needs to be higher for better results.
How to improve RoAS? Include less competitive keywords on your copies, create well-optimized product listings, and practice exact match bidding.
The TACoS metric offers a serious and more holistic insight into ad expenses than related metrics like ACoS. It calculates ad spend based on total organic sales generated from your client's Amazon advertising efforts. As a result, you can analyze the bigger picture of how the ROI affects your client's overall business profitability and growth.
How to calculate your ad's TACoS? Divide your Amazon PPC ad spend by the overall sales revenue.
How to evaluate your ad's TACoS? The lower the TACoS, the better your campaign performs (with some exceptions). You may also compare it with ACoS to balance organic and PPC sales.
How to improve TACoS? Optimize your client's product listing to boost CTR and CVR, which will help with PPC ad and organic sales.
Amazon PPC is an excellent way to boost your client's online sales, but only if you're doing it right. Of course, we don't mean getting it right the first time. Rather, it's about understanding and utilizing ad performance metrics to determine how to create better campaigns.
You can make a list and decide which metrics matter the most to your client's business goals. However, don't forget to include the top five metrics we discussed! They can help you gather useful insight into your client's advertisements and ensure they get more for the money.
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