Amazon Marketing Services , the company's advertising platform, is a cost-per-click uk phone number list model, like Google Ads, that can be used both to sell products (not to drive traffic or acquire leads) and to run brand campaigns to increase awareness and consideration of your store.
This means that a precise and well-calibrated advertising strategy must be built, based on constant monitoring and analysis of the right metrics.
In fact, to make sure you use Amazon Market Services in the right way, it is important to read, interpret and use the right KPIs.
In our experience, there are seven key metrics to monitor:
Clicks and CTR (Click Through Rate)
Search term impressions and impression share
CPC (Cost Per Click)
ROAS (Return on Advertising Investment)
ACOS (Advertising Cost of Sales)
Revenue and sales
Order Acquisition Cost
New Customer KPIs
Let's see together how to use them.
Want to learn more? Read here: Increase sales on Amazon thanks to sponsorships
Why You Can't Advertise on Amazon Without Tracking the Right KPIs
Let's start from a very important assumption: you can't advertise on Amazon by simply allocating budget to ads and letting them run on their own. Measurements and reporting, constant monitoring and adjustments allow campaigns to perform at their best, save time and money and sell more.
Many sellers struggle when it comes to measuring the effectiveness of their campaigns. However, understanding data and reporting can help you measure ad performance and make better choices to optimize your campaigns. In fact,
You can better understand your audience segments and reach the right one for you.
you can check the impact on sales performance
You can modify your strategy when necessary to improve your results.
Remember that you need to ask yourself the right questions when you want to analyze the performance of your advertising on Amazon.
How much traffic do you get to your product listings? Is it the right target?
Are the product sheets clear and comprehensive enough, do they provide useful information to buyers, and do they convey trust?
Are you making any money from sales or are you content to break even?
How do your customers rate your product? Have you done a thorough review analysis?
Additionally, Amazon KPIs combined with marketing metrics from other tools and platforms used for advertising (Google ADS, social media, etc.) help you understand what works and what doesn’t to drive business growth . You’ll also gain insights into how your customers perceive your brand and product, allowing you to adjust your entire marketing strategy if necessary.
Analyzing Amazon data and KPIs and comparing them with data from other platforms can be complex. To work successfully on your strategy, rely on experienced professionals. Contact us.
The Key KPIs to Monitor in Your Amazon Advertising Strategy
Clicks and CTR
Amazon distinguishes between clicks, or accesses to the product sheet, and sessions: the session shows the number of visits to your sheet by the same potential buyer within 24 hours. All the activities of a single buyer within 24 hours are considered a session. Session and clicks allow you to understand how efficient your ads are and you can realize any drops in interest in your products.
CTR (Click Through Rate) is the percentage of clicks on impressions (views of the ad), an essential metric for any online advertising campaign. A high CTR means that more people who see your ad click on it and land on your product page ; a low CTR indicates an inefficient ad.
There are many factors that can influence CTR, and not all of them are necessarily a sign of inefficiency in your strategy. For example, during periods of great offers on the platform, such as Black Friday, Cyber Monday or Prime Day, sellers often see their CTR drop significantly: this is probably due to the fact that there are so many offers going on and buyers tend to browse for a long time without clicking on ads or purchasing.
