Measure Selling Performance Efficiency Post Ad Spend With DataHawk
The report below combines historical changes of account-level sales and advertising metrics with monthly, weekly, and daily views. By combining the preceding in a centralized view, this report builds a dashboard that provides a comprehensive overview of selling performance efficiency after ads spend and before any other costs.
- Why It Is Important to Measure Selling Performance Efficiency
- Value in Correlating Your Ads Metrics
- How to Evaluate Your Ads Performance
- Ads Metrics Correlation Charts
- Sales History of Top-Selling Products
- Campaign Analysis
Measuring your ads performance is critical to the success of your paid advertising strategy. When calculating the performance of your Amazon ads campaigns, it is crucial not to limit your focus to a single metric or a limited scope of metrics. Evaluating your paid performance in a vacuum will lead to inaccurate ROI assumptions. For instance, you cannot judge your campaign solely based on impressions. While that judgment would tell you how many potential customers are visiting your product page(s), it will not tell you how to convert them into paying customers.
Here is something you should know: if your initial paid ad engages the visitors but does not entice them to buy, that does not necessarily mean the ad campaign is ineffective. Therefore, it is necessary to understand the underlying objective of the ad campaign. For instance, you might use paid advertisements to position blogs that seek to educate and nudge potential customers to pay for a good or service. If this is the case, you should examine every aspect of your ads efforts and correlate them with your sales before judging its performance as good or bad.
In order to properly interpret your report’s metrics and produce actionable solutions, you should look at the sales and ads history collectively.
Why It Is Important to Measure Selling Performance Efficiency
Typically, you measure sales performance with traditional sales measurement, goals achievement, or quota attainment. While the scales of measurement specified above provide a high-level overview of overall performance, they do not show how individual parts of a sales organization are performing. A leadership development plan is a strategy used to help guide an organization to reach its ultimate goals. However, more often than not, leadership development plans are based on gut instinct. Here is why you should avoid this: it is an assumption game.
So, why base your selling performance on assumptions when you can base them on raw data. Think of it like this, what if the payroll department was responsible for paying you based on how much they expected you to work instead of how much you actually work? Chances are you would be concerned that their decisions reflect their assumptions about your work ethic and not the precise amount of time you really worked. The same applies to sales planning; you cannot base the company strategy on assumptions of how a product will perform. What you can do is use your sales data to make well-informed decisions. The following section reviews which metrics to track to ensure you measure sales performance accurately and effectively.
Value in Correlating Your Ads Metrics
Increasing your price points to generate more revenue could work for you, but it is essential to keep testing its results. If the price increase decreases your sales, you should always strategize for ads to drive more sales until the product gains momentum. In addition to a competitive price point, you should have insights into your advertising performance. Data speaks volumes. That being said, it is imperative to collect data on your ads. This includes data on:
- Impressions and clicks
- CTR, CPC, ad spend, and ad sales
- Amazon ACoS, TACoS, conversion rate, and total sales
- Blended CPS and ad sales weight
- Organic sales, organic sales weight, and post-ad margin
However, if your ACoS is not necessarily profitable but still contributes to an increase in organic sales, the overall purpose of the campaign is understood. Repetition impacts consumer behavior. Even though your product ranks very well, running ads to a keyword would still increase organic sales. Thus, there is a definite increase in organic traffic if customers are seeing your ads first.
Using DataHawk, you can strategically and advantageously direct your advertising and ranking effects to reach markets, and potentially untapped markets, where you will see the most benefit.
How to Evaluate Your Ads Performance
Leverage DataHawk’s Sales and Advertising History Report to view historical advertising metrics on the top-spending ASINs with monthly and weekly views.
Measure the Duration of the Performance
By measuring the duration of your ads performance, you will have a more comprehensive understanding of total sales, the times in which those sales took place, the number of units sold, in addition to the number of unique ASINS. One of the most valuable aspects of this report is the chart. It provides you with a split between your organic and paid sales.
Monitoring these metrics is essential, especially if you are reaching the 70-80% organic mark. The report also gives you a holistic overview of the ad spend and the split of each ad type and blended ROAS.
The Annualized Run-Rate
Cohort Analysis With Historical Data
The line graph in the second column of the chart gives you the option of analyzing and making sense of the metrics without looking at the corresponding numbers.
The average selling price metric offers you a general idea of the range of sold products, assuming you have a more extensive catalog with a diverse price range.
ROAS and ACoS: One of the most insightful values in the chart is the ROAS and ACoS. With this data, you can analyze how much you are getting for each dollar you spent running your ads and vice versa.
Sometimes by focusing on the bigger picture, you tend to neglect those more subliminal opportunities for optimization — the ones standing behind significant results. For example, a combo of paid mobile ads, banner campaigns, and content marketing can drive a positive ad ROI. Yet, over 99.99% of banner ad budgets could go to waste. However, you cannot know for sure unless you create a strategy for measuring ad campaign effectiveness. Advertising campaigns have four goals: increase sales, inform, persuade, and remind consumers about your product. The best way to determine whether your ads achieve these objectives is to tie them to relevant metrics.
- Impressions (ad views) – refer to the number of times your viewer sees the ad.
- Click-through-rate (CTR) – applies to the percentage of times your ad gets clicked when on display.
- Cost per click (CPC) – is a dollar value you pay for each click or another type of action (conversion, sale, etc.).
- Conversion rate — refers to what percentage of your ads lead to the desired action (e.g., a sale or a subscription).
- Return on ad spend (ROAS) – is the amount of revenue you earn for each dollar spent on ads.
The efficiency section of the report houses the defining numbers. It provides an overview of your overall ads performance, in which you can compare and form conclusions on the composite ROAS figures with TACoS and blended CPC figures. It also presents a weekly split for all the metrics above and a daily view for the tracked 14 days.
Ads Metrics Correlation Charts
- Monthly Sales and Units Sold
- Monthly Organic and Paid Sales Percentages
- Monthly Ad Spend and Paid Conversion Rates
- Monthly TACoS
Sales History of Top-Selling Products
While looking at the best seller rank for all your products is helpful to predict their sales efficiency, it will not give you the exact data nor let you know what their sales were like a few months or a year ago. Remember, sales fluctuate all year, so analyzing an item’s current ranking will not help. For example, with a period overview like the one in the table and charts above, you can compare the sales of the best performing and worst performing ASINs using a single diagram.