Advertising metrics on Amazon
A deep understanding of the relevant campaign metrics is essential for managing and optimizing successful advertising campaigns.
In this post, we provide an overview of key metrics such as ROAS, ACOS, and brand metrics, explain their significance and optimization options, and show you where to download reports in Campaign Manager.
Profitability metrics at a glance
ROAS (Return on Advertising Spend)
ROAS measures advertising revenue in relation to advertising costs.
Formula: Revenue / Advertising costs
Example: An ROAS of 4 means that for every dollar invested, 4 dollars in revenue were generated.
Goal: The higher, the better.
Distinction: ROAS and Total ROAS (Total = total revenue)
ACOS (Advertising Cost of Sales)
ACOS is the ratio of advertising costs to advertising revenue generated.
Formula: Advertising costs / Revenue × 100
Example: An ACOS of 25% means that 25% of revenue was invested in advertising.
Goal: Depends on the business model; generally as low as possible while still generating profitable revenue.
Distinction: ACoS and Total ACoS (Total = total sales)
Sales Contribution: Share of advertising revenue in total revenue. Depending on the growth phase or strategic orientation, this share may be higher or lower. A general benchmark is between 30% and 50%. This metric is not provided by Amazon and must be calculated manually or generated using tools.
Brand Metrics / Brand Analytics
These provide information about brand-related KPIs such as:
- Brand search: How often is the brand searched for directly?
- Repurchase rate: How many purchases come from returning customers?
- Brand preference: Percentage of buyers who consciously choose your brand.
- Goal: Long-term brand building and customer loyalty.
- Brand metrics and brand analytics provide very helpful and valuable insights and form the basis for data-driven decisions.
Connection between metrics and business objectives
Campaign metrics must always be viewed in the context of the overarching corporate goals. Here are a few examples:
- Growth: Focus on reach, impressions, clicks, and new customers (high ACOS or low ROAS tolerable if necessary)
- Profitability: Focus on low ACOS or high ROAS, click prices
- Brand strengthening: Focus on brand metrics such as brand awareness and customer loyalty (impressions, clicks, click-through rate, etc.)
- Product launch: Focus on high visibility and traffic – even with low profitability in the short term
Possible optimization of metrics
- High ACOS
- Check budget distribution across advertised ASINs
- Check CPC and lower bids
- Increase conversion rates with better product pages
- Identify cost drivers in campaigns
- Identify and promote low-hanging fruits
- Exclude unprofitable keywords
- Optimize bidding strategy
- Improve brand metrics
- Strengthening brand campaigns: Development of own brand protection campaigns (defensive campaigns)
- Increase customer loyalty through attractive offers (brand-tailored promotions, bundles, savings subscriptions, etc.)
- Increase awareness through Sponsored Brands → Brand Store
Download reports in Campaign Manager
Step-by-step instructions:
- Kampagnen Manager öffnen (Werbung > <Kampagnen verwalten)
- View reports: Measurement & Reports menu > Sponsored Ads Reports
- Select report type: Select , for example, "Sponsored Products," "Campaign Performance," or "Search Term Report."
- Set the time period and granularity: Example : Last 30 days, daily or campaign level.
- Generate and download report: The report is usually created in CSV or Excel format.
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