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You can easiliy create a Amazon Ads report following this step :
To start exporting your Amazon Ads data to Google Sheets, you need to install the Catchr add-on. You currently have two options :
Option A: Via the marketplace:
Option B: Directly within a Google Sheets:
Once you have installed the add-on, you can start making requests.
Through diverse advertising plans, Amazon has become a lucrative platform for global sellers, with a 4.5x return on ad spend. But ranking the products on top and standing out among a million other sellers is not a piece of cake. With a strong financial investment, marketers also need a systematic approach to evaluate and improve their strategies for sustainable revenue.
To address this problem, most sellers now rely on key performance indicators. They help you identify the errors and craft optimized campaigns through reliable, data-driven information. For this reason, it’s essential to learn the top Amazon ads KPIs to help upgrade your selling strategy and make the best use of this platform.
So, join us as we discuss them below in more detail.
Amazon ads KPIs provide us with the facts and figures to monitor the progress of our advertising campaigns and marketing efforts on the platform. They let you regulate the overall costs with better optimization strategies to reach your potential audience. Depending on the type of ads or business, you can track these KPIs using different time limits.
Amazon now holds over 7% of the online advertising market, but many sellers find it challenging to reach their target audience and drive more sales through ads. These top 6 Amazon ads KPIs will help every marketer understand the ins and outs of the platform’s marketing services, improving their ad performance.
Through the pay-per-click (PPC) ads on Amazon, sellers pay the fee only when a potential buyer clicks on the ad. The advertising cost of sales keeps track of the PPC campaigns by comparing the money spent on them to the total income generated as a result. The formula is as follows:
You will get the final value in percentage. For instance, if your marketing cost is $1,00,000 and your total revenue is $2,00,000, the ACoS would be around 50%, meaning 50% of your income goes into advertising efforts.
Measuring this value is significant because it helps you determine the cost-effectiveness of your marketing strategies and find areas of improvement. Amazon seller accounts should maintain a lower ACoS as it promises better-performing ad campaigns with increased net sales and lesser investment.
Importance as a KPI
By estimating the ACoS, sellers can:
The search terms on Amazon's KPI report indicate the intent of online shoppers when they search for a product using particular keywords. These advertising keywords help your brand grow and generate substantial revenue within a reachable budget. Let’s understand the concept by an example!
Suppose you have displayed your product ads with the lowest-ranking keywords that receive little to no click-through rates. This practice will devalue your ACoS over time, affecting the overall ad performance and compromising your conversions in the long run.
The trick is to craft a digital marketing strategy with a suitable list containing negative keywords. For instance, you only sell outdoor dog tents, but the customer searching for dog tents wants to explore the indoor options. Now, if your search terms contain ‘indoor’ as a negative keyword, the buyers searching for indoor dog tents will not see your ad.
Importance as a KPI
By enhancing your ad keyword approach, you will gain the following benefits:
The return on ad spend measures the revenue you get from investing in Amazon ads. You can calculate this value by dividing the total income by the ad spend. For example, $3000 in return for a $1000 investment means the ROAS is 3. That means you earn $3 for every dollar spent on the Amazon ads.
According to advertising experts, the average ROAS of around 3 to 5 suggests that your ads are bringing in more than you are investing. However, a lower value indicates the need for careful optimization and readjustment of your approach to suit your marketing goals. To achieve a good ROAS, you can try different keywords and alter your campaign to reduce the cost per click.
Importance as a KPI
Keeping track of ROAS is remarkable for squeezing the most value out of your Amazon FBA investment. It helps you:
Amazon's cost per acquisition, or CPA, is the expense required to acquire a single customer on the platform through your advertising campaigns. You can calculate it by dividing the total cost of marketing efforts by the number of acquired customers over a specific period.
For example, if you spend $30,000 for marketing or sales and tend to attract 300 new paying customers, your CPA would be $100. For companies, lower CPA values are ideal as they boost the possibility of acquiring more customers on a limited budget, and a higher CPA indicates a great deal of expense without any margin for profit.
According to Amazon's ads library, there is no universal CPC value to promise a flourishing business as it varies with the type of business. But you can still grow a loyal consumer base if you hit the pain points of customers with exclusive deals and focus on advertising SEO to offer them the best possible experience.
Importance as a KPI
With CPA as one of your Amazon Ads KPIs, you can:
Turning web visitors into permanent customers is inevitable for a successful Amazon business. You can keep up with this statistic through the conversion rate, which gives you a percentage of customers who complete a desired action after a web visit, such as buying a product or filling out a form.
A suitable conversion rate for Amazon ads should be between 10 to 15%. You can calculate this value through the total website visitors divided by the number of conversions. The best practice to elevate your CR is to focus on the existing customer base instead of spending money to acquire new ones.
Many sellers have improved their conversion percentage by assessing their campaign goals and working through the software for optimization. One such example is a menswear seller account, experiencing a 3x increase in sales through ad conversions.
Importance as a KPI
Using the conversion percentage as a KPI can help you:
Amazon’s click-through rate tracks the visitors who click on your ad compared to the number of times they see it. A higher CTR indicates higher traffic on your site, while a lower value means your products lack a robust listing. You can calculate this by dividing the total clicks by the total number of impressions and multiplying by 100.
For instance, if 100 people click your ad out of 2000 people who viewed it, your CTR would be around 5%, which might be true in exceptional cases, but anything above 0.5 or 1 is considered good on the platform.
You can improve your CTR by dedicating more efforts toward generating captivating, relevant ad content that reaches your targeted audience and strikes a chord with them. It is possible through discounted deals and other promotional campaigns that sit right with your potential buyers and persuade them to click.
Importance as a KPI
CTR is one of the most crucial Amazon Ads KPIs to track as it can help you:
Amazon has become increasingly popular among sellers and provided endless revenue opportunities to people from across the globe. However, manually handling and processing the raw data is a challenge for many account holders and marketers, which hinders their performance. But with Catchr, you no longer have to worry!
It simplifies the raw and intricate data, offering a seamless visualization to make data-driven decisions and better-quality ads. Whether transferring the data to your favorite tools or crafting attractive digital marketing reports, Catchr sorts everything for marketers owing to its simple and easy-to-use features.
So, why wait? Click here to book your demo with Catchr and get ahead of the competition with robust utilization of Amazon ads KPIs.
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