ACoS, TACoS, or ROAS?

Question

What are some common mistakes that Amazon sellers make when interpreting ACoS, TACoS, or ROAS data? How can sellers avoid these mistakes and make more informed decisions?

Comments

Here are some common mistakes Amazon sellers make when interpreting ACoS, ROAS and TACoS data:
ACOS: They only focus on low ACoS without considering if they're actually making a profit.
They don't realize that a higher ACoS now might lead to more sales and profit later. Also, they chase an extremely low ACoS that might not be achievable for your product.
ROAS: They ignore lower ROAS campaigns that might still be profitable. They aim for high ROAS without aligning with your overall business objectives. Moreover, they don't understand which ads led to specific sales, leading to incorrect decisions.
TACOS: They don't factor in sales that come without ads, leading to skewed data. They think that high TACoS means ads are ineffective when it could be boosting overall sales. Also, they overlook how ads can impact other products' sales on your store.
Read the further detail in the following blog:
https://ecomfist.com/acos-roas-and-tacos-which-amazon-advertising-metric-is-best/

Answer 1

Another common mistake is not testing different ad formats, targeting strategies, or bidding strategies. Without testing, sellers may miss out on opportunities to improve the effectiveness of their campaigns and may not be able to fully optimize their ad spend. To avoid this mistake, sellers should regularly test different ad formats, targeting strategies, and bidding strategies to identify what works best for their specific products and target audience. This can help to improve the overall performance of their campaigns and ensure that they are making the most out of their advertising budget.