Amazon PPC and Sponsored Ads

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Amazon Pay Per Click

ACOS: Advertising Cost of Sale.
ACOS measures the performance of Amazon’s Sponsored products campaigns.
ACoS shows how much of every dollar earned with ads was spent on the ad campaign
The lower the ACOS  the Higher the profit)

The formula of ACOS :
Ad Spend / Revenue * 100 = ACOS


TACOS: Total Advertising Cost of Sale.
TACOS measures advertising spending relative to the total revenue generated.
The formula of TACOS: Total ad Spend / Total Sales Revenue (including organic) *100 = TACOS

ROAS: Return on ad spend
The number of times the cost of advertising gets returned. The higher the number the better your returns are 
The formula of ROAS: Revenue / Ad Cost

Amazon Ad campaign
Amazon Ad campaign


Amazon TACOS vs ROAS on advertising.

TACOS stands for Total Advertising Cost Of Sales, while ROAS stands for Return On Advertising Spend .

TACOS is a measure of the total revenue on the platform, divided by the total cost of advertising, whereas an ROAS is a measure of the direct return on investment. In this case the investment is the Ad spend. For example, if your company’s revenue was $100,000 and you spent $10,000 on advertising last year, then your TACOS would be 10%

If you spent $1000 on ads and earned $10,000 from that advertising, then your ROAS would be 10XSo for a ROAS of 1, it means you get a $1 dollar return for every $1 spent on Ads


Tacos vs ROAS

What are Organic Sales?

Organic Sales are the sales you get without the use of advertising. For example, someone performs a search on Amazon, and after finding your product (not a PPC ad) they buy it. This is called an organic conversion. Organic search engine rankings are far more important than ever before due to the rise of ad blockers. The best way to achieve a good organic ranking is by producing high-quality, original content for the audience that your business wants to reach.

PPC Campaign Creation – Ads Management

PPC stands for Pay Per Click, this is a way to advertise your products by bidding on keywords so your product shows up on the 1st page even before you rank organically on that position.
It is also possible to create display Ads campaigns, and product targeted campaigns (this is when you target your competitor’s products and yours shows up when people are looking at the competitor’s)

  • Pay Per Click, Display Ads, Product Targeting and Category Targeting2
  • Manual Ad Campaigns3
  • Managing target ACOS for profitability or for ranking4
  • Broad match, Phrase match, Exact match5
  • Creation and ongoing management

Organic conversion

What Are Amazon Advertising Campaigns?

Amazon advertising campaigns are a great way to promote your products to a wider audience. They are also very cost-effective and can be set up in a matter of minutes.

There are three types of Amazon advertising campaigns – Product Display Ads, Sponsored Brand Ads, and Sponsored Products Ads. The first one is used for promoting products on the Amazon search results page, the second one is used for promoting brands, and the third one is used for promoting products.

Product Display Ads are set up by creating a list of keywords that your product would appear for on Amazon search results. Then you enter your keywords into Amazon’s advertising platform so that they can be shown in search listings when the keywords are triggered.

Sponsored Product campaigns seem to be the most common campaigns of all, and according to sellers, it’s also the one with the best Ad revenue or better return on advertising costs.


If you want to bypass the learning curve of Amazon advertising you can hire an Amazon PPC Agency to help you manage ad campaigns while growing your brand. Some Amazon PPC Agencies offer packages that include ad campaigns, copywriting, and more.

Remember we can also manage Walmart Seller Central

To learn more about how Amazon PPC agencies can help you grow your business, contact ads@prolificzone.com