George Meressa, founder of Amazon DSP Partner company, ClearAds, recently discussed Amazon Advertising Cost of Sale versus Conversion Rate to help Amazon sellers better understand advertising success.
23 Whitestone Way, Apr 17, 2020 /prREACH/ -- ClearAds is an Amazon ads expert and Amazon DSP Partner company. George Meressa, founder and CEO of ClearAds, recently discussed understanding and optimizing Amazon Advertising Cost of Sale (ACoS) versus Conversion Rate. "When used effectively, Amazon advertising has the potential to boost profits, raise profiles and encourage everything from an enhanced online profile to more sales," he said.
For more information about ClearAds, please visit: https://www.clearads.co.uk
ACoS refers to the amount spent on advertising and is calculated by comparing total ad spend with total sales. "ACoS is one of the most important metrics on the Amazon Sponsored Ads platform and is often regarded as the foremost way of finding out whether you are successful on the platform and frequently helps to shape bidding behavior and which search terms are selected," Meressa explained.
Meressa provides insights to help Amazon sellers understand ACoS in a recent ClearAds blog post. These include:
- Impressions - The number of times the ad was displayed.
- Total spend - The amount of money which has been spent on advertising campaigns.
- Clicks - The analysis of how many times the ads have been clicked on.
- Click-through rate - This is important for the effectiveness of the ads.
- Cost per click - A calculation of the money spent on each ad click.
- Overall sales - This takes into account both the sales which have been generated by advertising activities and those which have been generated organically.
Amazon conversion rates are an incredibly important factor as they indicate that a shopper has moved beyond simply looking at a product after clicking on an ad and has made a purchase. "The conversion rate you expect will vary depending on the product and can suggest that you need to further optimize your product pages. Amazon considers your conversion rates when determining ad ranking, which itself dictates the frequency with which ads are displayed," Meressa said.
"Depending on the intended outcomes of your Amazon advertising activities, it may be time to rethink how you define a successful ACoS. And a simple look at your conversion rates may prove you're being far more successful than you originally thought," he concluded.
Anyone interested in learning more about ClearAds and the services it provides, please visit the company's official website.