Amazon reveals how ACoS & Sponsored Product reports improve advertising

In our last IOS update about Amazon sponsored ads, we informed you about the etailer’s simplified payment process for these ads. The change in this payment process occurred after sellers pointed the inconveniences they were facing.

To ensure sellers using its advertising options have an even better experience, Amazon also educates them via email about Advertising Cost of Sales or ACoS and Sponsored product reports.

What is ACoS?

ACoS is a percentage derived by dividing total advertising spends by the total sales derived from clicks on your products.

ACoS = Total Spends / Total Sales

Example: you spend Rs. 500 on advertising and receive Rs.1000 sales then the ACoS amount is 2%.

To check your ACoS:

1 – Open the Campaign Manager tab

2 – Click on the ACoS heading towards the right side of your screen

According to Amazon’s Sponsored team, the lowest numbers are the top performers.

Each product being advertised can be reviewed within a campaign. This will help you determine which individual products are performing the best. In addition to this, you can investigate which keywords are contributing to higher clicks on your products and bid higher on them accordingly.

Sponsored product reports

These are reports provided to you by the online marketplace for all your sponsored products. They allow you to analyse and optimise your ad campaigns properly. The different sponsored product  reports you can expect are:

1. Campaign performance report – provides results of all ad groups, SKUs and keywords too. With information on how each of your campaigns performs, you can make appropriate changes and better bids, thus, optimising your ads.
2. Search term report – offers the actual search terms customers enter into the search on Amazon. It provides data on impressions, clicks and conversion data.
3. Bid by keyword report – must be used to compare the present keyword bids to the marketplace average winning bid for that exact keyword.
4. Performance by SKU report – is a performance summary of every one of your advertised products. You can utilise this information for a comparative analysis of impressions, clicks, click-through rate (CTR), average cost per click and total spends.
5. Performance over time report – presents a summary of clicks and spends over a specified period of time. Daily summaries of clicks and spends are available for the time frame of 3 weeks.
6. Other ASIN report – gives visibility into the actual ASIN bought after an ad is clicked on.

How was your experience with Amazon’s sponsored ads so far? Did they exceed your expectations, do these reports help? Lets us know in the comments below.