How to Understand and Analyze the Amazon ad Reports
Many sellers do not know how to analyze the report and are confused with the PPC report data. In fact, for the evaluation and understanding of a ad report, you need to consider it from three aspects: words, numbers, conversion rate.
The word refers to the Customer Search Term. In the advertisement report,it includes both the product keyword itself used by the customer for searching and the ASIN code in the automatic advertisement report. For the high exposure and click words, the seller needs to filter them one by one, consider if those words are consistent with your product, and if the product of the ASIN code page has the same attributes with yours, If it is consistent, reserve it, if inconsistent, it is necessary to consider taking some action.
In manual ads, for high-exposure, high click but low conversion word, you want to delete it. While for automatic advertising, high exposure, high click but poor conversion words, if you find the words has no strong relation with your products, You can add it to the Negative Keywords to avoid further invalid traffic.
The number refers to the quantity, when the ad starts to run, the Amazon seller must pay attention to two quantity: Exposure and click volume. If the exposure is low, either the word is not accurate or the bid is low, and occasionally the product details may be poor. For low exposure keywords, you can try to enhance the single click price, with the price increases, the exposure will increased,at this time,you need to pay attension to the amount of clicks, if the clicks is too little, the data base is small, and small data base is can't used to demonstrate the effectiveness of ad delivery. so in orddr to analyze the exposue and click amount, you need to try to make your report data base larger. Do not ask me why your ad was clicked 5 times and have not placed an order yet. My answer is: I do not know. What I really want to say is that any conclusion given on too small a data is unaccurate.
Conversions: the seller needs to focus on three conversion rates when running a ad, one is the conversion from exposure-to-click, CTR (Conversion Through Rate), and another one is ACOS, The percentage between ad cost and sales, and the last one is CR, which is the percentage of the number of orders generated from the ad clicks. The CTR should be higher, and the ACOS should be lower, the CR naturally should be higher. but none of these data are fixed, as long as you think the conversion is appropriate. The higher the CTR and CR percentages, the higher the match between your product and your customer's needs, the higher your keyword's quality score in your ad plan, and the lower the click cost will be unconsciously. So, the improvement of CTR and CR can reduce the ad click cost. However, from the operating aspect, the conversion rate will eventually fall on ACOS.
Some people say that the lower the ACOS, the better it will be, it is certainly right, but there are four variables are affecting ACOS: CPC and clicks, product unit price and the number of orders, it is easy to see that the core variables which is affecting ACOS are actually advertisements bids and unit prices. If the price of a product is low, it is very difficult to achieve a very low percentage of ACOS. However, my suggestion is that the ACOS percentage is basically acceptable as long as it is equal to your gross profit margin. It is worth to continue running, of course, on this basis, the lower the ACOS percentage is, the better it will be. According to the above points for the Amazon station PPC ad data report, and combined with an advertising report from one seller, here are some suggestions:
● Remove the words which has clicks but no conversions in manual ads. In automatic ads, add high-click and exposure, but no converted words to Negative Kyewords and add them in a precise match way.
● If the ASIN code doesn't bring you conversion, we should search these ASIN code one by one to see which details page of the product your product appears in, why did not convert, if your optimization is worse than others? or your own price is higher than others? If your review rating is not good enough?.