💡 Why you need a new metric for your Amazon PPC game 🧠 [Video]

In this video, I discuss why I believe that CPC as a metric is overvalued and why a metric like CPC as a percent of ASP is undervalued.

I explain how CPC is influenced by bids and the amount of clicks received for different placements. I also highlight the importance of comparing CPC as a percent of ASP between products or brands. Using two different charts with varying ASPs, I demonstrate how CPC can be significantly different while CPC as a percent of ASP can vary even more.

This metric provides valuable insights for bid management and understanding the relationship between spend and sales.

It took me a while to fully understand why this metric

In the example you see we would say, okay, the CPC is double, and that’s an interesting fact. But what’s more interesting is that our CPC as a percent of our ASP is not only double, but it’s tenfold, right?

So here, the 70 cent is 0.6% of our ASP, and here it’s 5.4%. That means we are paying much, much more compared to our ASP, which is super important because our ASP determines how much sales we are getting, and our CPC determines how much spend we are doing, and spend divided by sales is ACoS, and ACoS is essentially the metric most people would put in their bid management system.

Do you use such a metric already?

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#amazon
#amazonadvertising #amazonads #ppc #advertising #amazonppc #amazonppctips #ecommerce #ecommercebusiness #ecommerceentrepreneur #amazonadvertising #amazonmarketing #amazonmarketplace

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All Links:
https://open.spotify.com/show/52WcuRsG0gyxVw6lyEc86r
https://podcasts.apple.com/de/podcast/amazon-ads-raw-daily/id1683826420
https://alexanderswade.com/amazon-ads-raw-daily/
https://www.linkedin.com/company/amazon-ads-raw/
https://www.tiktok.com/@amazonadsraw