ACoS Doesn't Tell You Everything | Amazon Ads Reality Check

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If you are running Amazon PPC campaigns, you have probably stared at an ACoS of 50%, 100%, or even 354% and thought something was terribly wrong. But depending on your actual KPIs, those numbers might be exactly where they need to be. This video breaks down how to think about Amazon advertising performance the right way, using real campaign data from a real account.

What this video covers:

Why ACoS is not the only metric that matters in Amazon advertising
ACoS is the metric everyone talks about in Amazon PPC, but obsessing over it alone means you are missing the full picture. In this video, I show real campaign data where ACoS ranges from 20% all the way to 354%, and explain why none of those numbers on their own tell you whether your Amazon ads are working.

How cost per acquisition changes the way you read your Amazon ads data
For this particular account, the primary KPI is not ACoS but how much ad spend we are willing to invest to bring in a new customer. I show the custom Chrome extension we built at AmazoniaPPC that adds a conversion rate column and a custom acquisition cost column directly inside your Amazon campaign manager, so you can see the metric that actually aligns with your business goals.

Product targeting campaigns and competitor conquest strategy
I walk through a product targeting campaign in this account where the agreed budget for targeting competitors and taking sales away from them is up to $30 per sale. When you see that context, a high ACoS stops looking like a problem and starts looking like a deliberate, well-structured Amazon advertising strategy.

Why click-through rate is one of the most neglected Amazon ads metrics
CTR is something we talk about a lot when improving main images for Amazon listing optimization, but it is just as important inside your Amazon advertising campaigns. I explain why a 0.19% CTR in this account does not mean the keyword targeting is wrong, and how the product category, competition level, and shopper behavior all play a role in what a normal CTR looks like for your campaigns.

The truth about impressions in Amazon Sponsored Display campaigns
One of the most misleading metrics in Amazon display advertising is raw impressions. I show a Sponsored Display campaign with over 800,000 impressions, but when you add the viewable impressions column, the real number drops to just 23,000. An impression is only counted as viewable when at least 50% of the ad appears on screen for at least one second for display ads, and two seconds for video ads. This is a critical distinction when evaluating your reach through Amazon display ads.

Awareness, consideration, and purchase as a full-funnel approach
Rather than optimizing for a single metric, this account is structured around all three phases of the funnel: awareness, consideration, and purchase. That is the mindset shift that separates Amazon advertising that actually grows an account from Amazon PPC that just chases a lower ACoS number.

If you are managing Amazon PPC ads, running Amazon Sponsored Products, Sponsored Brands, or Sponsored Display campaigns, or working with an Amazon advertising agency to scale your account, this video will help you stop reacting to individual metrics and start reading your data the way it was meant to be read.

Contents:
0:00 Why Amazon advertising metrics can be misleading
0:12 ACoS breakdown across different campaign types
1:10 Custom acquisition cost metric and Chrome extension
1:50 Product targeting and competitor conquest strategy
2:13 Click-through rate and why it matters in Amazon PPC
3:42 Viewable impressions vs raw impressions in Sponsored Display
5:08 Holistic view: awareness, consideration, and purchase phases

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