Diving into Amazon Marketing Cloud: what can I use it for, really?
Why Optimizing For ACoS Is Not Sufficient
Amazon Advertising – ACoS is Not Enough
One question I love asking marketers on Amazon is what are they trying to achieve by advertising on Amazon, particularly through sponsored ads? Most mature marketers will say something along the lines of:
Then I ask what metrics they track, optimize or measure their agency on. Almost invariably it’s ACoS (Advertising Cost of sales) which is essentially how much money did you spend for $1 in ad attributed sales, or Ad spend divided by Paid sales. It’s understood that the lower the ACoS, the better the performance of your advertising campaigns.
Hmm…, this makes me scratch my head. How does optimizing on ACoS drive the objectives listed above? Here’s the challenge with an over reliance on ACoS.