AmazonA series of tools and reports are provided to help sellers analyzeAmazon AdvertisingActivity performance. onceAmazon SellerWhen you start an advertising campaign, you will get an automatically generated report from Amazon.
This report provides sales data of sellers' advertising products and insight into sellers' personal activity performance.Blue Ocean Yiguan has learned that,With these advertising analyses, sellers can grasp the overall advertising performance and determine successful strategies to improve the conversion rate and optimize advertising activities.
according toAmazonSome parameters of the seller's current advertising target may be more important.
For example, the seller may hear many people give a reductionACoSRecommendations. Although a higher ACoS is usually something to pay attention to, if the seller's goal is to quickly sell products (such as new product release), the seller may be willing to spend more money to obtain more sales.
Therefore, sellers should be clear about the goals they want to achieve, choose the right indicators to measure advertising performance, and know how to decompose these data into insights. These are the key steps in calculating the advertising costs invested in Amazon.
Here are some information aboutAmazon AdvertisingKey indicators of.
IKey indicators of Amazon advertising
oneReach: The total number of people who see advertisements on any screen or webpage.
twoImpressions: Number of times to show advertisements to potential buyers.
threeNew-to-Brand Metrics: Measure the customers who bought the seller's products or brands on Amazon for the first time in the past year, which can determine whether existing customers or first-time customers have purchased the seller's products through advertising.
(1) Total New to brand purchases and sales
(3) Cost per New to brand customer
fourAttributed Sales: The total product sales generated within one week of clicking the advertisement. The Advertising Performance Report also provides data on total personal sales of advertising products and other products.
fiveAdvertising Cost of Sales（ACoS）: refers to the percentage of the seller's income spent on advertising.
Basically, this is a measure of advertising efficiency, showing how much the seller spent on sales.
ACoS can be easily calculated by dividing total advertising expenditure by total sales. For example, if the seller spent $100 in an advertising campaign, but received $1000 in sales, then ACOS is 10% (that is, $100/$1000=0.10).
sixReturn on Ad Spend（RoAS）It refers to how much the seller earns for every dollar spent on advertising.
ACoS shows every dollar of advertising input from sales, while ROAS shows the opposite.
RoAS is calculated by dividing total advertising revenue by total advertising expenditure. Using the same example mentioned above, the ROAS would be 10:1 (i.e. $1000/$100).
sevenprofit margin: refers to how much is left after the unit cost is deducted from the price.
ACoS and RoAS alone are not enough to find a suitable advertising budget. The seller also needs to consider how other factors affect the profit margin. This includes:
(1) Cost of goods/manufacturing cost.
(2) Transportation costs.
(3) Amazon fees: Amazon FBA fees, referral fees, etc.
eightClicks: The number of times shoppers clicked on the advertisement.
nineClick-through rate（CTR）: Measures the percentage of ad displays that cause clicks.
(1) CTR measures keyword relevance of advertising campaigns.
(2) A high CTR means that advertising is relevant to shoppers' search criteria and attracts potential customers.
(3) Low CTR means that buyers will not click on advertisements.According to Blue Ocean Yiguan,Because advertising keywords have nothing to do with the buyer's search criteria, or advertising is not attractive to the buyer.
(4) CTR is calculated by dividing the number of clicks by the number of displays (that is, CTR=Clicks ÷ Impressions).
IIMarketing objectives and related indicators
1. Objectives:Improve brand awareness，Increase advertising coverage and attract new customers for the brand.
Indicator: Impressions; Brand Recall Lift； New-to-Brand Sales。
2. Objectives:Consideration, so that customers are more likely to consider the seller's products when weighing their choices.
Indicator: Product Detail Page VisitsVisits to product details page； Store Visits; Ad Engagement。
3. Objectives:Improve conversion rate，Drive product sales as efficiently as possible.
Indicator: sales; ACOS； ROAS。
4. Objectives:Increase loyalty, turn one-time buyers into loyal repeat customers, and promote recurring income.
Indicator: repeated purchase; Subscribe and save registrations.
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