Amazon Advertising & Marketing Agency

ACoS and ROAS are the same metric, just inverse. ACoS is ad spend/ad sales, while ROAS is ad sales/ad spend.

Ultimately, it depends on each brand’s profit margins and business goals. If you’re looking to grow your account, it’s recommended to be more aggressive with advertising and to expand into upper-funnel strategies. This can result in an elevated ACoS and TACoS while trying to acquire new customers.

To become more profitable, you should focus on the lower-funnel strategies that will result in more profitable sales. It’s important to keep in mind FBA fees, sourcing costs, and the myriad of other fees that can reduce margin.

Amazon is a pay-to-play platform. Getting your products in front of customers is crucial since most people don’t go beyond the first page of search results. On top of that, competitors can impact your sales by advertising on your product pages and for top search terms.

It ultimately depends on business goals. The ideal model is a flexible budget that is adaptable and responsive to changing category trends. In these cases, we focus on finding the right overall efficiency (TACoS) and adjusting the budget as needed to meet that goal.

This works best for brands that don’t have a specific revenue target in mind. For brands working towards a specific sales goal, it’s important to leverage category insights, seasonal trends, promo/launch calendars, and historical KPIs (if available). We use metrics like expected CPCs, traffic, unit session percentage, CVR, and AOV to understand the budget needed to reach the brand’s goals.

DSP (Demand-Side Platform) is a programmatic marketing tool that allows advertisers to buy video and display ads across Amazon and other websites and apps, targeting specific audiences based on Amazon's data and other factors.

Amazon Marketing Cloud (AMC) is a privacy-safe and cloud-based data analysis and management platform developed by Amazon. It allows brands to gather, process, and analyze data from their Amazon advertising campaigns to optimize their marketing strategies and better understand consumer behavior.

On Seller Central, third-party sellers manage and sell their products directly to customers on the Amazon marketplace. With Vendor Central, Amazon buys products from vendors (often manufacturers or distributors) and resells them to customers.

Refine targeting

• Start with keyword research to cover the top relevant terms in the category.
• Utilize auto campaigns (broad and phrase match) to learn new keywords that convert well for your products.
• Keep exact match keywords separate to better scale and control.

Monitor performance several times a week, and adjust bids according to your goals.

• Consistently increase/decrease bids on keywords and targets according to ROI goals.
• Don’t just optimize towards efficiency; select a few targets with the best balance between search volume and return, and optimize towards increasing SOV.

Utilize negative keywords

• To avoid “wasted ad spend”, utilize negatives to reduce irrelevant clicks.

Ad budget plays a big role in this. If your ad budget is limited, you should focus on supporting your main revenue drivers. We like to lean on the 80/20 rule. Typically, around 20% of top sellers drive 80% of total revenue. We recommend focusing ad spending on growing that 20%.

There are other instances where supporting ASINs outside of this pool makes sense, like supporting a new launch, product variation, or supporting items with excess inventory. But it’s important to set a budget for these groups and establish clear goals to ensure that ad dollars are spent most effectively and strategically.

Listing optimizations

• Product detail page (PDP) content significantly affects overall conversion rates, especially in highly competitive and saturated markets. This trickles all the way down to the ad conversion rate. The more compelling the content, the better the chance of making a sale on ads. Ensure that titles, images, videos, bullets, A+/enhanced brand content, and storefronts create a compelling shopper experience and represent brand identity and values.

Targeting optimizations

• Focus ad dollars behind the most relevant keywords/product targets. Keywords are going to have a varying degree of difference in CVR. Monitor CVR at the keyword level, and use that to help inform your optimization decisions.

SB/SD Creative

• Make sure the ad creative acts as an extension of the brand. Custom images and videos should be captivating, informative, and consistent with PDP/storefront content.