Features
If your ACoS is at least 22%, you need to be on your toes.
The average Advertising Cost of Sales (ACoS) across Amazon is approximately 22%. This means that advertisers spend $0.22 on ads for every $1 in sales.
One thing is clear from these figures – if you’re spending so much on ads, you can’t fold your arms or go to sleep. Well, except if you’re using an automated Amazon ads tool like Merch Jar.
Thankfully, we’ve put together a guide for you. Read on to find out how to monitor your Amazon ads for increased conversions.
We've helped numerous Amazon sellers monitor their ads, saving them valuable hours and significantly boosting their profits. Our tools automate ad management, adjusting bids and promoting high-performing keywords while eliminating poor performers.
And our work speaks for us. Users like Cameron Scott, an Amazon seller, speak glowingly of our solutions, noting significant time savings and improved ad performance. By using our tools, Cameron was able to focus on other aspects of his business.
The Amazon marketplace is too competitive to leave your ads to luck. You need all hands on deck to get a decent ROI. After understanding the different types of Amazon ads, monitor them religiously. Here are some reasons why you should be vigilant.
Tracking performance metrics like impressions, click-through rates (CTR) and ACoS lets you see how your ads are performing. You also know how your ad budget is being spent and the best ways to allocate it. Ad monitoring enlightens you on the bids to adjust to get the best value for money.
Like you would an orange, you want to squeeze as much juice as possible from your ads. Continuous tracking lets you pause ads that are not doing so well and promote high-performing ones. You also get to make real-time adjustments to your campaigns for maximum performance.
Ad monitoring allows you to know your customers better. Tracking metrics like search terms, CTR and conversion rate lets you know how your customers and prospects behave and what they want. This information will help you develop a better ad strategy and improve the quality of your ads.
The competitive environment on Amazon is one reason why you must continuously monitor your ads. When you track your ads, you’re able to quickly respond to market changes ahead of your competitors.
Adequate monitoring makes for a well-informed ad strategy which, in turn, gives visibility to your products and improves sales. By tracking key metrics, you can fine-tune your approach, targeting the right audience at the right time for maximum impact.
Let’s get to the nitty-gritty. How do you monitor your ads? What metrics should you use to track the performance of your ads? Find below ten essential Amazon ad metrics you need to monitor for increased conversions.
CTR shows you the percentage of users who saw your ad and clicked on it. It lets you know how many people are interested in your product. If this metric is high, it means your target audience found your ad relevant and wants your product. If it is low, it means the ad is not resonating with them.
With Merch Jar tools, monitoring your CTR and other metrics is a breeze. You get detailed analytics and automated insights on the performance of your ads. This report analyzes your CTR using metrics like keywords, product targets, and ad groups.
To improve a low CTR, think of touching up your ad copy and refining your keywords for better targeting.
This metric measures your ad spend and revenue. It lets you know how profitable your ad has been. Your ACoS gives you a clear picture of the impact your ads have on your revenue. To calculate ACoS, divide the total ad spend by the total sales generated.
Impression lets you know the number of times potential customers see your ads, regardless of whether they interact with them or not. It reflects the reach of your ad campaign. If your impression is high and your CTR is low then you’re probably not targeting the right audience.
Your RoaS is the amount you earn for every dollar you spend on ads. Monitoring your RoaS lets you know if you’re making any profit from your ads or not. Your aim should be to maximize your RoaS as much as possible.
How much do you pay for every click on your ad? That’s what your CPC tells you. This metric is calculated by dividing the cost of your ad campaign by the number of clicks on the ad. Tracking this metric helps you manage bids more strategically, improving your ad performance.
Ad placement describes where your ad is found on search pages or product detail pages. Monitoring your ad placement is crucial to ad performance. This is because where your ad is placed determines its visibility, and of course, CTR.
Total spend is the total amount you spend on your ad campaigns in a specified time. It gives you an insight into how much it costs to run the campaign. This data helps to evaluate your ad’s performance and manage budgets.
Total sales refers to all the revenue generated from your ad. It is sales made as a direct result of the clicks on your ad. This shows you the impact of the ad on your overall income.
The main goal of your ad campaign is to convert your target audience to buyers, and the conversion rate shows you this. The metric lets you know the percentage of clicks that result in sales. It shows how effective your ad has been.
Though similar to Return on Advertising Spend (RoaS), Return on Investment (ROI) is broader. While RoaS is specifically about the money generated per every dollar you spend on ads, ROI is about the profitability of your whole ad campaign.
ROI evaluates the overall profitability of your ad campaigns, from production to fulfillment, and not just the ad spend. When your ad campaigns give you a high ROI, it means you’re not only covering your ad costs, but you’re also running a profitable business.
Effective ad monitoring isn’t necessarily something you can implement overnight. It is a result of deliberate and specific actions. And in the competitive Amazon marketplace, a solid ad strategy makes all the difference. Explore our best practices for monitoring your Amazon Ads.
Researching and selecting the right keywords is non-negotiable for a successful ad campaign. Find out the keywords your competitors are using. This will guide you in choosing the most promising ones. To make this easier, use the Amazon advertising console. It will help you identify high-performing keywords that are relevant to your product.
For proper ad monitoring, strategically organize your ad campaigns. Categorize them by products, brands, or promotions. For best results, use both manual and automatic targeting. Merch Jar works perfectly for automated campaigns. It provides in-depth, automated ad monitoring and management.
With advanced tools that are now available, monitoring your Amazon ads has never been easier. One such is the Amazon advertising console. It has a suite of tools that are like a starter pack for ad monitoring. The console has a campaign manager feature that lets you create, manage, and monitor ads like Sponsored Products, Sponsored Brands, and Sponsored Displays.
For more in-depth and, of course, automated ad monitoring and management, choose Merch Jar. Compared to Amazon’s ad console, Merch Jar provides better automation and efficiency. Our robust Recipes feature lets you automate actions like adjusting bids, pausing campaigns, and modifying budgets.
You can't go wrong with our Smart Campaigns tool which constantly monitors keyword performance. This tool automatically promotes high-performing keywords and pauses poorly-performing ones, leading to budget efficiency. This is definitely a step above the Amazon ad console which requires manual inputs.
With Merch Jar, sellers can make large-scale changes to ads, using the Bulk Actions feature. This is perfect for sellers with large product catalogs. They can automate the management of all their product ads by just pressing a couple of buttons. Time saved, money made.
To prevent your products from showing in the wrong searches, update your negative keyword list. This technique filters out irrelevant searches, letting your ads appear to a more targeted audience. With Merch Jar, you can save yourself the stress of manually updating your negative keyword list. Our platform helps you automate the process.
Shoppers are drawn to appealing products. So, invest in high-quality content and images for your ads. Ensure your copywriting is top-notch and use only superior images. You’re competing with thousands of sellers, therefore, to stand out, make sure you’re putting out only the best content and images.
Despite the fierce competition on Amazon, many sellers are experiencing increased conversions and profits. This is a result of real-time bid adjustments and strategic keyword management made possible by Merch Jar.
With solutions like Recipes and Smart Campaigns, ad management is automated, saving sellers time and costs while improving their ad campaigns and boosting conversions. Get started for free now.
