Blended Metrics

March 12, 2024

Blended Metrics combine estimated royalties from KENP reads with order sales, providing critical insight for KDP sellers with an accurate calculation of the actual profit driven by their campaigns.

Calculation of Blended Profit

Blended Profit, the primary component of Blended Metrics, offers a comprehensive view of ad-derived profits by integrating:

  1. Order Sales: The revenue attributable to advertising from paperback, hardcover, and ebook sales.
  2. Average Profit Margin: Applied to order sales to calculate the net profit after Amazon fees and royalties.
  3. KENP Royalties: Direct earnings from Kindle Unlimited pages read.

The formula for Blended Profit is as follows:

Blended Profit = (Order Sales * Average Profit Margin) + KENP Royalties

Incorporating Ad Impact Multipliers

For a nuanced understanding of ad profitability, Blended Metrics may include Ad Impact Multipliers, addressing indirect advertising benefits such as:

  • Extended page reads beyond the standard 14-day attribution window.
  • Increased sales due to series read-through and additional catalog-wide purchases.
  • Increased organic sales from improved product ranking and visibility.

A more complex formula for Blended Profit that incorporates these multipliers is:

Blended Profit = (Order Sales * Average Profit Margin * Order Impact Multiplier) + (KENP Royalties * KENP Impact Multiplier)

For guidance on configuring these multipliers, see our "Ad Impact Multipliers Documentation."

Blended ACOS: An Essential Measure

Blended ACOS refines the traditional ACOS by integrating KENP royalties, providing a complete picture of ad profitability for Kindle Unlimited titles. Blended ACOS is vital for KDP sellers, as it encapsulates all revenue streams influenced by ads, offering a genuine ROI assessment.

The formula for Blended ACOS is:

Blended ACOS = Ad Spend / Blended Profit

Implementing Blended Metrics in Merch Jar

To effectively utilize Blended Metrics, configure your average profit margin and Ad Impact Multipliers under the Impact Multipliers section in the Ad Account Settings.

By default, the average profit margin is set to 100%, and Ad Impact Multipliers are set to 1. This default state assumes that all order sales directly translate to profit, and all order sales and KENP estimated royalties are solely ad-driven without additional indirect contributions.

Adjust your average profit margin and impact multipliers in your Ad Account Settings.

For more accurate Blended Metrics, adjust these settings based on historical data and business insights.

Calculating Average Profit Margin

Calculating Ad Impact Multipliers

Utilizing Blended Metrics

Blended Metrics, particularly Blended Profit and Blended ACOS, are crucial for KDP sellers in Kindle Unlimited to evaluate the genuine impact of ad spend on profit. These metrics are integrated within Merch Jar's core functionalities:

Ad Manager

  • Apply Blended Metrics as filters to refine data analysis within datasets.
  • Access detailed profit calculations by hovering over Blended Metric figures.
Hover over any Blended Metric to display the calculation tooltip.

Recipes and Smart Campaigns

  • Use Blended Metrics to set conditions in Smart Campaigns and Recipes, promoting data-driven automation and decision-making.

Blended Metrics Definitions and Formulas

Blended Profit
The combined total profit from sales and estimated royalties received from your ads, incorporating your profit margin and impact multipliers.
(Sales * Order Impact Multiplier *  Profit Margin) + (Estimated Royalties * KENP Impact Multiplier)

Blended ACOS
This measures the percentage of direct and indirect profit generated from your advertising compared to the amount spent on those campaigns. Blended ACOS is an inverse of Blended ROAS.
Spend / Blended Profit

Blended ROAS
This measures the direct and indirect profit generated for every dollar spent on advertising. Blended ROAS is an inverse of Blended ACOS.Blended Profit / Spend

Blended RPC
The average profit earned for each click on an ad, accounting for sales impact multipliers and profit margins.
Blended Profit / Clicks

Each of these metrics provides insights into different aspects of ad performance, empowering KDP sellers to make informed advertising decisions.

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