Question 1

How do you measure success with Amazon Advertising?

Accepted Answer

Success on Amazon means something different for each seller, and for each seller it means something different for each product. Almost every one of our clients have products in different stages of the product lifecyle whether they are new launches in the discovery phase, products being advertised agrressively in the growth stage, or establish products in the profitability stage. Often a product is transitioning between the two stages and hybrid approach must be used.   In short, we will consider success something different for each product but our goal is to make sure we both agree on what success means.

Question 2

What are ACOS, ROAS and TACOS?"

Accepted Answer

ACOS is Amazon's basic metric for advertising efficieny. It is percentage of ad spend divided by the total AD sales. This tells you how efficient your ads are, but it doesn't tell you the effect on organic sales.   ROAS is the inverse of ACOS. It tells you how many dollars you made for every dollar spent.   TACOS is True ACOS, and it measures the percentage of your ad spend against your total sales. The purpose of TACOS is to make sure you are either spending in a good range based on your gross profit margin.

Question 3

What kind of results should I expect?

Accepted Answer

This will depend on the product itself and where the product is in the lifecycle. If it is a brand new product you can expect to get impressions and limited sales. You should be ready to spend at least $25 a day on the product's campaigns.   In growth we will try to achieve ACOS within a certain target or below the baseline target. Each month we may lower our target based on the new baseline acheived. A good ACOS target for most products is between 15% and 35%.   For products that you need to be profitable you will typically aim for a TACOS of 5-10%. If the TACOS is too low then we will increase the spend on ads even if the ACOS is high. If TACOS is too high then we will lower the spend even if the ACOS is in range.

Question 4

What percentage of total sales should come from ads?

Accepted Answer

Once a product is profitable it is ideal for 25% of sales to come from ads. While the product is in the growth phase, 25% to 75% should be expected which is also why the ACOS is typically high.

Question 5

What should we expect from our work with PPC REV?

Accepted Answer

Besides for acheiving sustainable growth, our goal is to communicate consistently and effectively about your account. That means setting monthly goals together and then reviewing them to make sure we are taking everything into consideration.

Question 6

How often do you optimize my account?

Accepted Answer

For new accounts we are often making adjustments daily, and for more established campaigns we make adjustments at least once a week. It takes time for Amazon to pull in data, so besides for budget it's not effective to make changes more than once a day. Once we are employing longer term strategies, we need a week's worth of data to make decisions on what to optimize.

Question 7

Do you provide services besides for PPC management?

Accepted Answer

We focus exclusively on Amazon PPC managment since it requires a high level of strategy and monitoring. While other factors are important for advertising success, a campaign can be successful without the best listing, but the best listing will not be successful with the wrong strategy.   We have partners that can provide other Amazon services.

Question 8

Why do you charge a percentage of ad spend?

Accepted Answer

Charging based on ad spend is considered a standard in the PPC industry for a decade. Ultimately it allows us to take into account the additional work involved as the campaigns grow.   At the same time, you get to keep the revenue as your account grows. Fees based on ad revenue typically get exceptionally high while fees based on ad spend remain more realistic.   We don't charge based on the number of products because we want you to have the option of utilizing our services for your entire catalog without considering the additonal cost.

Question 9

How does billing work?

Accepted Answer

Our monthly management service is comprised of a base fee and percentage of monthly PPC ad spend. A $750 base fee is charged at the start of every month. 5% of PPC ad spend is calculated and charged at the end of the month.   There is a minimum 3-month contract for our management services starting the day we get working access to your account in order to ensure proper set up, management, and optimization of all campaigns. In the event that your contract start date is mid-month, the first month base fee charge will be prorated from the start date till the end of the month.   The percentage of PPC ad spend will be calculated from the start date till the end of the month and charged at the end of the month.   In the event of termination prior to the completion of the 3-month minimum, you will be charged according to contracted date. If your contract started mid-month, the base fee charges will be prorated till the contracted end date and the percentage of PPC ad spend will be charged till the contracted date as well.   Our team will be at your service as per usual and working on your account till the end of your contract unless instructed otherwise.

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