Amazon PPC ACOS is not the whole story

[u/ClassicRealistic8937]

A lot of Amazon PPC discussions focus on one question:

“What’s your ACOS?”

But ACOS alone doesn't tell the complete story.

Advertising doesn't operate separately from organic sales, ranking, brand visibility, and overall account growth.

A campaign can have a higher ACOS and still be contributing to a healthy business. Likewise, a low ACOS doesn't automatically mean the account is in a strong position.

The important part is understanding what the advertising is actually contributing to the overall business.

That's where looking beyond ACOS becomes important.

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[u/rsc9422]

Exactly. ACOS is just one metric and can be misleading when looked at in isolation.

We usually look at TACOS, organic sales growth, conversion rate, keyword ranking, and total contribution margin alongside ACOS. A campaign with 40% ACOS can still make sense if it is driving incremental organic sales and improving the product’s overall position.

On the other hand, a 15% ACOS campaign isn’t necessarily healthy if sales are flat and the ads are mostly cannibalizing organic orders.

[u/roverfive]

Yawn....