We’re excited to announce a new feature in our Amazon PPC tool (for sellers) and Amazon Advertising Manager (for vendors). Advertisers now have a powerful new metric available to them to evaluate the ROI of their Amazon PPC campaigns.
In Sellics, you can now see your advertising campaign overspend or underspend (above or below your target ACoS) in real dollar figures:
Are you overspending on Amazon PPC?
Advertisers typically rely on calculating their target ACoS and break-even ACoS values to get a good understanding of their campaign performance. At Sellics, we also provide your target ACoS and break-even ACoS metrics to help our customers better understand their advertising performance.
However, while your Amazon ACoS is a useful metric to understand your ad spend efficiency (aka if your campaign is losing you money), it does not show you the actual dollar cost incurred in your campaign.
For example, you could have two campaigns where Campaign A is 20% over your target ACoS, and Campaign B is 10% over your target ACoS. At this point if you were only looking at the ACoS performance, you would assume Campaign A is performing worse and would focus your optimization efforts here.
However, if you looked at your Amazon ad spend for the two campaigns:
Campaign A ad spend (20% over target ACoS) = $100
Campaign B ad spend (10% over target ACoS) = $1000
With an ad spend of $1000 and an ACoS that is 10% over your target ACoS, Campaign B is actually losing you more money. Yet if you were only optimizing your campaigns based on ACoS performance, you would wrongly assume Campaign A has more wasted ad spend.
Identify Amazon PPC campaigns losing you the most money
Advertisers can now use the new ‘Overspend’ metric in Sellics that will show you exactly how many campaign dollars you have overspent (or underspent) in relation to your target ACoS.
You can also leverage this new metric across all granularity levels: campaigns, ad groups, keywords, and search terms.
Do you have any questions or suggestions for improvement? Let us know in the comments below, or email us at: email@example.com. We look forward to receiving your feedback!