Amazon Advertising: All About ACoS and Amazon’s Marketing Products Amazon is the third largest advertising network on the planet next to Google and Facebook. By taking advantage of Amazon’s advertising tools, sellers can get their products in front of a huge audience on the largest shopping site in the world. To be direct – there is a potential to generate substantial revenue here! Since visitors are on Amazon to make a purchase, they are generally a more qualified audience. When managed correctly, Amazon Sellers can generate better returns here than on Google PPC or Facebook ads.
Here’s a general overview of Amazon’s advertising solutions. Amazon Advertising Cost of Sales (ACoS): The Most Important Performance Metric To calculate Amazon ACoS, take your total ad spend and divide it by your total ad sales; then display that as a percentage. If you spent $2,000 in advertising and made a total of $10,000, your ACoS would be 20%. Amazon’s window for attributing sales from a click that result in a conversion is 14 days. With other ad platforms you have more flexibility in controlling attribution settings. In the case of Amazon, they decide and you cannot change it. ACoS is an important metric for a few reasons. To fine-tune and optimize your Amazon advertising strategies, you must reduce the amount of your ACoS as much as possible. Then align that with your product margin to ensure you understand your true cost and profit on the channel. If your ACoS remains static, or at an acceptable level, as you scale your advertising spend, then you haven’t yet reached past your efficient spend or saturation level. Saturation is when you increasingly need to spend more money to get the same results. Advertising with Amazon’s Marketing Products