How To Monitor Amazon PPC Ad Campaigns: 9 Crucial Factors

  • #Scale Insights Team

Are you leveraging Amazon performance advertising effectively? 

As an Amazon seller or marketer, you're likely familiar with heightening product visibility and driving sales through Sponsored Products, Sponsored Brands, and Sponsored Display ads. 

But are you diligently monitoring these campaigns? 

Failing to track performance is a pitfall many fall into, leading to missed opportunities and wasted ad spend. 

This comprehensive guide explains how to monitor Amazon ads, guiding you on vital metrics and innovative tools for precise monitoring. You'll also learn how consistently tracking your Amazon PPC campaigns can help you stay ahead of the competition.


9 Key Amazon Metrics Marketers Should Monitor

By monitoring these key metrics, you can gain insights into the performance of your Amazon sponsored ads so you can adjust strategies accordingly. 

1. Advertising Cost Of Sales (ACOS)

Understanding ACOS is akin to mastering the pulse of your ad campaign’s profitability. It measures the ratio of ad spend to targeted sales, providing a clear picture of the direct impact of your ads on revenue. 

Aim for an ACOS that aligns with your profit margins—too high, and you're eating into profits; too low, and you might miss out on market share.

2. Click-Through Rate (CTR)

CTR gives you a glimpse into customer interest. It indicates the percentage of shoppers who clicked your ad after seeing it. 

A low CTR could signal that your ads aren’t resonating with your target audience or that your keywords aren't as relevant as they could be. Tweak ad copy or refine targeting to enhance your CTR.

3. Impressions

Impressions count the number of times your ad is displayed, reflecting the reach of your advertising campaigns. It's a volumetric measure that, when analyzed alongside CTR, can reveal the appeal of your ads. If ad impressions are high but clicks are low, it’s time to revisit your targeting parameters.

4. Return On Ad Spend (ROAS)

ROAS is your compass for measuring the effectiveness of your ad spend relative to the revenue generated. 

It's a more granular take on campaign success than ACOS, offering insights into the return you’re getting for every dollar spent. ROAS should be maximized to ensure your investment is yielding optimal results.

5. Return On Investment (ROI)

While similar to ROAS, ROI takes a broader view, encompassing the overall profitability of your advertising campaigns, considering all costs—not just ad spend. An Amazon campaign with high ROI is a campaign well worth your investment.

6. Cost Per Click (CPC)

CPC provides a snapshot of the cost incurred for each ad click. This metric helps manage bidding strategies and can be a key indicator of market competition intensity. Adjusting CPC bids can optimize your ad placement and performance.

7. Total Sales & Total Spend

The balance between total sales and total spend is the ultimate indicator of your campaign's health. These metrics should trend in your favor over time, with sales outpacing or growing in line with ad spend.

8. Conversion Rate

Conversion rate shines a light on the effectiveness of your ads in turning clicks into purchases. This metric tells you not just if customers find your ads compelling enough to click but if they're convinced enough to make a purchase. Optimize your listings to improve conversion rates.

9. Ad Placement

Where your ad appears on Amazon’s digital real estate can significantly affect performance. High-visibility placements can drive traffic and conversions, so it’s vital to understand the placement dynamics and bid competitively for premium spots.

Keep in mind that monitoring these nine key metrics is not just about collecting data but about making informed decisions that drive sales and growth for your business in Amazon's competitive marketplace.

2 Handy Tools To Monitor Amazon PPC Ad Campaigns

Monitoring Amazon PPC campaigns effectively can be a challenging task, but with the right tools and strategies, it can turn into a structured, insightful process. 

Here are two tools you can use to monitor Amazon PPC campaigns to ensure you get the best return on your advertising spend.

1. Amazon’s Advertising Console And Reporting Features

Begin with Amazon's native Advertising Console. Its reporting features give you direct insights into campaign performance metrics, allowing for real-time monitoring and adjustments.

The console offers comprehensive reports, including sales, impressions, clicks, CTR, CPC, and ACOS, among others. It displays this information in a user-friendly layout.

2. Scale Insights For Advanced Analytics

For deeper dives into data, third-party tools can offer advanced analytics and more granular control over campaign variables. 

For those who seek to harmonize simplicity with sophistication, Scale Insights stands out. It's not just a tool; it’s a strategic partner that empowers you with AI-driven campaign structures and actionable insights. 

With features like mass campaign creation, customizable algorithms for automation, and detailed sales analytics, Scale Insights equips you not just to monitor but also to master your Amazon PPC campaigns.

With Scale Insights, you can also:

  • Identify competing keywords across your campaigns and remove duplicates with poor performance.

  • Discover weekly, monthly, moving average, and day parting trends for multiple metrics.

  • And so much more!

If you want to check out more third-party tools, here’s a list of the best Amazon PPC automation tools. Each tool offers unique features that help Amazon sellers and marketers generate comprehensive Amazon advertising reports. 

Discover Amazon PPC Tools through these articles:  Amazon Seller Analytics Software, Best Amazon Analytics Tools, and Amazon PPC Automation Software. Elevate your advertising strategy now!


Your Next Step: Tips To Optimize Your Amazon PPC Ad Campaigns 

Once you've gathered actionable data from diligent monitoring of your Amazon PPC ads, the next vital step is to use the data to optimize your campaigns

Whether it's poor visibility, low click-through rates, unqualified traffic, or wasted ad spend, these issues can be addressed effectively with the right optimization strategies. 

Here are some of the things you could do to improve your campaigns:

  • Adjusting Bids

  • Adjusting Ad Creatives

  • Analyzing Ad Components

  • Refining Targeting

  • Honing In On The Most Effective Keywords

These general steps are the cornerstones of an effective optimization process that can lead to better ad placement, saving ad budget, creating more engaging content, and a higher return on investment. 

For a more detailed explanation of each strategy, read our article on How To Optimize Amazon PPC Campaigns: 6 Profitable Strategies here.

The Role Of Monitoring In Adapting To Amazon PPC Trends

Monitoring your Amazon ads not only refines current campaigns but also prepares businesses for the future of online or e-commerce advertising.

By keeping a close watch on your ad performance, you position your business to quickly leverage emerging online advertising trends and stay ahead of the competition. 

Ready to stay on top of the game? Read on for four key trends that continuous monitoring can help you capitalize on.

1. Tuning Into Automation and AI Insights

As AI and automation become more prevalent, monitoring enables advertisers to understand and harness these complex tools. 

The insights gained from vigilant tracking allow for the optimization of AI-driven campaigns, ensuring that they remain both efficient and effective.

2. Evaluating Video Ad Engagement

With video ads setting the new standard for engagement, the role of monitoring is to evaluate their impact meticulously. 

It’s about assessing watch times, click-through rates, and conversions to determine the storytelling techniques that resonate best with audiences.

3. Creating A Brand Story That Hits the Mark

Brand storytelling is an art that thrives on adaptation. By monitoring the performance of narrative-driven content, brands can continually tweak their stories to mirror the changing preferences and behaviors of their audience.

4. Voice Search Response

Voice search is changing how consumers interact with ads. Monitoring allows businesses to analyze voice search patterns and optimize their PPC campaigns accordingly, ensuring they meet the consumer in this new search option.

Conclusion On How To Monitor Amazon Ads

Monitoring Amazon PPC ad campaigns is an intricate balance of strategic oversight and data-driven decision-making. With the metrics outlined above and the implementation of robust tools like Scale Insights, advertisers can not only monitor but also magnify their campaign success.

Ready to deepen your understanding of Amazon PPC? Explore these informative articles: How Much is Amazon PPC, Best Amazon Analytics Tools, and Advanced PPC Strategies.

Start your journey towards optimized ad performance today with a 30-day free trial of Scale Insights. No credit card required, and the trial expires automatically—no strings attached.

If you want more details about how our software can help you grow your business, please contact us today. 

Frequently Asked Questions On How To Monitor Amazon Ads

How Often Should I Check My Amazon PPC Campaigns?

Ideally, review your PPC campaigns weekly to adapt to market changes and optimize bids, but keep a closer eye on high-budget or critical campaigns.

What Is A Good ACOS For Amazon PPC?

A 'good' ACOS varies by product and market but typically, aim for a figure that's below your profit margin percentage to maintain profitability.

Is ACOS The Most Important Amazon Metric To Monitor?

While ACOS is crucial for understanding ad profitability, no single metric should be considered in isolation. A comprehensive approach that includes ACOS, TACOS, and other performance indicators is essential.

What Are Sponsored Products On Amazon?

Sponsored Products on Amazon are pay-per-click ads that allow sellers to promote individual product listings on Amazon's search results pages and product detail pages. 

These ads help increase visibility and sales potential by targeting customers actively searching for similar items.

How Do I Know How Much To Spend On Amazon Ads?

Determining your Amazon ad spend hinges on your advertising cost of sale (ACOS) goals, product profit margins, and overall marketing budget. 

It's a balance between spending enough to compete effectively and not so much that it cuts deeply into your profits.

Where Do Amazon Ads Show Up?

Amazon ads can appear in several places, including within Amazon's search results pages, on related product detail pages, on the Amazon home page, and on other sites and apps owned by Amazon or its partners. 

The ad placements depend on the type of ad campaign you choose, such as Sponsored Brands, Sponsored Display, or Sponsored Products ad.

How Effective Is Amazon Ads?

The effectiveness of Amazon ads varies by product category, competition, and how well the campaign is managed, but they can be highly effective in increasing product visibility, driving sales, and improving organic ranking when executed with a strategic approach to targeting, bidding, and optimization. 

As per a report by Statista, Amazon's global ad revenue reached $38 billion in 2022, nearly double the revenue in 2020​​. Furthermore, Influencer Marketing Hub notes that the average Cost Per Click (CPC) for Amazon Ads in 2023 is $0.91 in the United States​​. These figures underscore the growing effectiveness and importance of Amazon's advertising platform.