How to keep strong RoAS or ACoS in PPC campaigns

Pay-per-click (PPC) advertising campaigns on Amazon when used efficiently can lead to humongous success on the platform. Sales on Amazon can grow with time, at their own pace depending on the quality and demand of your product. But with Amazon being such a competitive platform with a huge number of rival sellers, PPC advertising is your best option to make buyers land on your product page. You wouldn’t want to pay more to gain less, right? So it is important to maintain profitable RoAS (Return on Ad Spend) or ACoS (Advertising Cost of Sales). Efficient PPC campaigns can help you skyrocket your sales and reduce your ad spending at the same time. Important things to keep in mind for taking your PPC campaigns to the next level are listed below

What are RoAS and ACoS?

Let us first understand the differences between the two metrics and their purposes. RoAS stands for Return on Ad Spend and it was initially used by Google. This advertising statistic is relatively new to the Amazon market, although it has long been utilized in the off-Amazon internet advertising sector. Calculating RoAS is required if you are advertising or selling online to measure the efficiency of your marketing campaigns. RoAS is calculated by dividing the revenue from advertising by the total advertising spend.

RoAS = (Ad Revenue/Ad Spend) or (Conversion value/Cost)

ACoS stands for Advertising Cost of Sales. This is the percentage of your sales that you spend on advertising. It is a critical indicator for measuring Amazon PPC campaigns and developing new strategies. You are dividing your ad spend by the sales generated by the ads.

ACoS = (Ad Spend/ Ad Revenue)*100

How do I know if my Amazon PPC campaign is losing money?

It’s not always possible to tell whether an Amazon PPC campaign is successful simply by looking at its ROI (Return on Investment). Many factors affect a successful PPC campaign. However, several indicators help you determine if your campaign is underperforming or not. Amazon PPC campaigns have different variables that contribute to their success. To reach your goals and understand your campaign efficiency, you’ll need to track these variables throughout your PPC campaign.

How do I know what metrics to watch for in my Amazon PPC campaign performance?

You should focus on either one of the two above-mentioned categories of metrics when you’re analyzing your Amazon PPC performance. As long as you’re able to meet your RoAS or ACoS targets then your campaign is performing well. If you’re not meeting your targets then you may want to look into optimizing your keyword list or adjusting your bid strategies.

How can I adjust my Amazon PPC campaign settings to improve my results?

There are a few simple ways to improve the success of your Amazon PPC campaign by making small changes to your account. First, you could adjust your bid strategy. Bid adjustments allow you to change the amount of money you pay for each click. By changing your bids, you can increase your ROI without having to lower your quality score. Another way to tweak your Amazon PPC campaign is to increase or decrease your maximum CPC (Cost-per-click). When you set your maximum CPC, you’re telling Amazon how much you’d be willing to pay for clicks on your ads. Adjusting your max CPC can help you increase your ROI without sacrificing your quality score. Finally, you can adjust your daily budget to control how much you spend on your Amazon PPC campaigns. Increasing your daily budget can help you spend less money while achieving similar results. All three of these methods can give you a significant boost in your Amazon PPC Campaign’s performance.

What are some things I can do to improve my Amazon PPC campaign’s conversion rate?

The conversion rate of your Amazon PPC campaigns is directly affected by your target audience. If your target audience isn’t interested in your products or services, then your conversion rates won’t be high enough to generate a positive return on investment. In order to improve your conversion rate, you’ll need to select the right keywords for your product or service. When selecting keywords, think about the terms people would search for when they were looking to purchase your product or service. Look for keywords that are relevant, clear, concise, and engaging

Xena is an AI-powered ecommerce growth platform that uses data intelligence to both automate & optimize ecommerce growth on Amazon & Walmart.