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Amazon Advertising Metrics That Matter: A Beginner’s Guide to KPIs and Reporting

Running ads on Amazon can feel like stepping into a vast marketplace with endless possibilities—and a lot of confusing numbers. Which metrics should you track? Which ones actually help you grow sales and avoid wasting money?

In this guide, we’ll simplify the world of Amazon advertising metrics. We’ll group them into three categories that match how advertisers really think: visibility, engagement & sales, and profitability. By the end, you’ll know exactly how to measure success and make smarter decisions for your brand.

Why Metrics Matter in Amazon Advertising

Metrics are more than just numbers—they’re your map to profitable growth. Without them, you’re spending blindly. With them, you can:

• Spot what’s working (and what’s wasting money)
• Adjust budgets and bids confidently
• Identify new opportunities
• Prove results to stakeholders or clients

The Three Types of Metrics Advertisers Should Track

Let’s organize Amazon advertising metrics in a way that makes sense for beginners—and pros alike.

A. Visibility Metrics: “Am I Getting Seen?”

Impressions

What it is: The number of times your ad appears in search results or on product pages.

Why it matters: High impressions mean visibility. Low impressions might indicate low bids, narrow targeting, or budget limits.

Example: You run an ad for “Yoga Mat” and get 80,000 impressions in a week. That’s solid visibility in a competitive market.

Clicks

What it is: The number of times shoppers click your ad.

Why it matters: Clicks reflect interest. No clicks = no chance to convert to sales.

Click-Through Rate (CTR)

Formula: Clicks ÷ Impressions

Why it matters: Low CTR suggests your ad isn’t compelling. This could mean:

• Your images or titles aren’t attractive enough
• Your keywords are too broad or irrelevant
• Your ad placement is poor

Cost-per-Click (CPC)

What it is: The average cost you pay for each click on your ad.

Why it matters: Rising CPCs can eat into profit margins. You want efficient bids that keep costs low while still winning visibility.

B. Engagement & Sales Metrics: “Am I Selling?”

Orders

What it is: The number of purchases attributed to your ad clicks.

Sales

What it is: The total dollar value of purchases tied to your ads.

Example: Your top keyword drives $10,000 in sales from $1,200 in ad spend. That’s a strong result worth scaling.

Conversion Rate (CVR)

Formula: Orders ÷ Clicks

Why it matters: A low CVR means shoppers click but don’t buy. Possible causes:

• High price vs. competitors
• Low review ratings
• Poor product images or bullet points

C. Profitability Metrics: “Am I Making Money?”

ACOS (Advertising Cost of Sales)

Formula: (Ad Spend ÷ Sales) × 100

Why it matters: Lower ACOS means higher efficiency. Know your margins to decide your target ACOS.

Example: You spend $2,000 and generate $8,000 in sales → ACOS = 25%. If your profit margin is 30%, you’re profitable. If it’s 20%, you’re losing money on ads.

ROAS (Return on Advertising Spend)

Formula: Sales ÷ Ad Spend

Why it matters: The higher your ROAS, the better your return on every advertising dollar.

Example: From the above scenario, ROAS = $8,000 ÷ $2,000 = 4x.

New-to-Brand (NTB)

What it is: The percentage of orders from customers who haven’t bought from your brand in the last 12 months.

Why it matters: Great for measuring brand growth beyond short-term sales.

Example: Out of 100 orders, 40 are new-to-brand → NTB Rate = 40%.

Conclusion

Mastering these metrics is the key to running profitable Amazon ads. Start simple, track consistently, and let your data guide smart decisions for your business growth.

What’s Next on AdmazonIQ?

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