Innovative Amazon ads analytics: a holistic approach to campaign success

Most Amazon ads analytics tools focus solely on operational performance. While helpful for day-to-day tasks, they often lack the depth needed for strategic decision-making. However, a meta-level approach provides a broader, more insightful perspective, acting as a monitoring system for ad spend and campaign performance. This bird’s-eye view empowers you to make data-driven decisions rooted in comprehensive analytics without necessarily falling into the bias-trap.

One major differentiator in advanced ads analytics is the TOTAL ACOS (Advertising Cost of Sale) metric. Unlike standard ACOS, which tracks only paid conversions, TOTAL ACOS includes both organic and paid conversions. This paints a more complete picture of advertising effectiveness and its influence on total sales.

For vendors, Amazon’s pricing model introduces several challenges:

1. Annual Negotiations: Amazon evaluates year-over-year (YoY) ROI and may aggressively recoup losses during annual vendor negotiations.
2. Balancing Pricing and Distribution: Vendors must balance competitive pricing with profitability.
3. Sticking to RRP (Recommended Retail Price): Vendors often aim for prices near RRP to maintain a balance between profits and Amazon’s margins.

In this context, CPO (Cost per Order) highlights hidden costs, offering insights into the true cost of acquiring each order through advertising.

Taking an holistic approach to Amazon ads analytics allows for a deeper, more strategic understanding of performance. Instead of simply comparing ad spend to product prices, you can:

• Compare actual purchase prices against ad spend
• Incorporate product margins for accurate profitability assessments
• Examine the link between ad spend and total product sales

This comprehensive view ensures a more precise evaluation of your campaign’s true cost and effectiveness.

Advanced Amazon ads analytics enable metrics that Amazon’s native tools cannot provide:

Reveals the actual cost of acquiring each order through advertising.

Provides a more accurate representation of advertising costs in relation to sales.

Combines organic and paid conversions for a holistic view of advertising impact.

These insights are made possible through an access to purchase price data, which Amazon’s Ad Console lacks. As a result, this level of analytics delivers insights beyond what Amazon’s native tools offer.

By leveraging advanced metrics and holistic analytics, Amazon Sellers and Amazon Vendors can:

• Pinpoint underperforming campaigns that may appear profitable under traditional ACOS
• Optimize ad spend to drive profitability across all products
• Make data-backed decisions for inventory management and pricing strategies
• Gain a competitive advantage by understanding the true impact of Amazon advertising

All in all, adopting an innovative approach to Amazon ads analytics empowers sellers with insights previously unavailable. Moving beyond simple metrics and embracing a comprehensive view of advertising performance enables smarter decision-making, better optimization, and ultimately greater success on Amazon. By focusing on advanced metrics like TOTAL ACOS and CPO, sellers can uncover hidden opportunities, minimize risks, and maximize profitability.

Book a free trial today and discover how AMVisor can help you unlock deeper insights and optimize your Amazon advertising strategy!