Here’s something interesting:
That’s a big deal—and it shows just how powerful Amazon Ads can be when used the right way. But here’s the catch: running ads isn’t just about turning them on and hoping for results. To really see growth, you need to understand the metrics behind your campaigns.
This guide is here to simplify that. We’ll walk through Amazon Ads metrics from A to Z, breaking down what they mean, why they matter, and how to actually use them to grow your sales.
Click-Through Rate (CTR) shows the percentage of impressions that lead to clicks, indicating how engaging and relevant your ad is to shoppers. Higher CTR means your creativity and targeting are resonating.
Cost Per Click (CPC) is the average amount you pay for each click on your ad. Lower CPC allows you to drive more traffic for the same budget, but very low CPC may mean low competition or poor placement.
Impressions measure the number of times an ad appears in search results or product listings. While high impressions indicate strong visibility, they must be evaluated alongside CTR and conversions to ensure that visibility translates to sales.
Advertising Cost of Sales (ACoS) shows how much you spend on ads compared to the sales they generate. A lower ACoS means your campaigns are more profitable, while a very high ACoS suggests you’re overspending. But extremely low ACoS can also mean you’re limiting growth by not investing enough in ads.
Here’s the formula:
ACoS = (Ad Spend ÷ Ad Sales) × 100%
Tracking ACoS helps sellers balance profitability with growth. For example, spending $200 on ads to make $1,000 in ad sales equals a 20% ACoS—you spend $0.20 for every $1 earned. Optimizing for the right ACoS ensures ads stay profitable while still scaling visibility and market share.
Total Advertising Cost of Sales (TACoS) measures ad spend against total sales (ad-driven + organic). Unlike ACoS, TACoS shows how ads support overall business growth, including organic ranking.
Here’s the formula:
TACoS = (Ad Spend ÷ Total Sales) × 100%
A declining TACoS often means ads are boosting organic visibility. For example, if you spend $500 on ads and make $5,000 in total sales, your TACoS is 10%. This helps advertisers understand whether campaigns not only drive paid sales but also fuel long-term organic growth.
Return on Ad Spend (ROAS) measures how much revenue your ads generate for every dollar spent. Higher ROAS means your campaigns are more efficient, while low ROAS signals poor performance or the need for optimization.
Here’s the formula:
ROAS = Ad Sales ÷ Ad Spend
ROAS provides a clear picture of ad efficiency. For example, if you spend $200 and generate $800 in sales, your ROAS is 4—meaning you earn $4 for every $1 spent. It works as the reverse of ACoS, helping advertisers evaluate profitability and allocate budget toward the most successful campaigns.
Units sold reflects the number of products purchased via ad interactions. By analyzing units sold across campaigns or SKUs, advertisers can spot trends, identify top-performing items, and refine inventory or promotional strategies to maximize sales volume.
Attributed sales show exactly what revenue your ads generated. Amazon tracks these within a set attribution window. A sale today may come from a click yesterday.
Ads should boost both paid and organic sales. If your organic sales rise while TACOS drops, it’s proof your ads are fueling overall brand growth.
Amazon Advertising Console is dashboard for managing Sponsored Products, Sponsored Brands, and Sponsored Display campaigns.
How to navigate: Log in to Amazon Ads Console, select your account, and open the Campaign Manager. From there, you can view metrics like impressions, clicks, ad spend, conversions, ACoS, and ROAS.
How to navigate: In Seller Central, go to Brands → Brand Analytics. On Vendor Central, access the Analytics tab.
Explore valuable reports:
Amazon DSP is a programmatic advertising platform that allows advertisers to buy display, video, and audio ads at scale. With access to Amazon’s first-party shopper data, brands can precisely target audiences and measure campaign performance with an array of actionable metrics.
Understanding Amazon DSP metrics is crucial for advertisers seeking smarter, data-driven campaigns across Amazon’s extensive advertising network. Amazon Demand-Side Platform (DSP) empowers brands to reach shoppers both on and off Amazon with advanced targeting—and its rich suite of metrics lets marketers optimize for visibility, engagement, and ROI.
While Sponsored Product Ads metrics like CTR, CPC, and ACoS focus on driving immediate conversions on Amazon, Amazon DSP metrics provide a broader, strategic view of your advertising impact. DSP allows you to reach shoppers both on and off Amazon with display, video, and audio campaigns, giving insights into brand awareness, audience engagement, and multi-device behavior that Sponsored Product Ads alone cannot capture.
Reach measures the number of unique users exposed to your ads at least once. High reach indicates successful brand awareness efforts and helps marketers evaluate if their campaigns cover enough of the target audience.
Frequency is the average number of times each unique user sees your ad. Achieving the right frequency is important: too many exposures can lead to ad fatigue, while too few may not create enough brand recall.
Viewability measures the percentage of ads seen (in-view) versus simply served. Ensuring high viewability means customers are actually exposed to the brand’s messaging, which is vital for both awareness and conversion efforts.
For video formats, VCR shows the percentage of ads watched to the end. High video completion rates reflect strong engagement and effective creativity.
Audience Overlap reveals how much your targeted segments share the same users, helping improve efficiency by reducing redundant ad exposures and better allocating ad spend.
This metric tracks the number of unique users reached across multiple devices, revealing multi-channel engagement and informing cross-device attribution strategies.
CPM is the cost to serve 1,000 impressions; CPC is your cost per click. These metrics are essential for budgeting, comparing media efficiency, and controlling costs while maximizing engagement.
View-through conversions count purchases by users who saw (but did not click on) an ad before buying. This demonstrates the impact of ad exposures throughout the buyer’s journey—crucial for understanding attribution beyond the last click.
Brand Lift studies the impact of DSP campaigns on brand awareness and perception, using surveys or integrated research tools. This is key for advertisers focused on upper-funnel objectives.
By understanding these metrics and applying them strategically, advertisers can do more than just chase clicks—they can build profitable campaigns, strengthen organic visibility, and scale their brands in the world’s largest e-commerce marketplace. Whether you’re focused on immediate ROAS or long-term TACoS improvements, the key is to track the right numbers, test often, and adjust based on actionable insights.
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