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[5 Steps] How To Monitor Amazon Ads and Maximum ROI

Are you spending a fortune on PPC ads, but the results aren’t even close to what you w

Are you spending a fortune on PPC ads, but the results aren’t even close to what you want?

If the answer is “YES,” it’s time to learn how to monitor Amazon ads for maximum ROI to analyze your current situation, avoid rookie mistakes, and confidently lead your way to success.

That being said, this blog explores the key steps for monitoring your Amazon ad campaigns like a professional and finding the hidden opportunities that will dramatically boost your ROI.

TL;DR – How To Monitor Amazon PPC Campaigns

In this blog, we’ll cover the five best ways to monitor Amazon PPC ad campaigns for the best results.

Here are the strategies in a nutshell:

  • Step 1: Adjusting bids for guaranteed success
  • Step 2: Modifying Ad creatives as needed
  • Step 3: Analyzing different components of the Ads
  • Step 4: Refine your Ad targeting
  • Step 5: Prioritizing the most effective keywords

Your competitors are getting the benefits of Amazon ad management ― do not fall behind. Set up a free consultation call with IG PPC to learn how we can help optimize your PPC advertising efforts.

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7 Key Amazon Ad Metrics Marketers Should Monitor

Planning to learn how to monitor Amazon ads the right way?

Here are seven key metrics you should always focus on:

1. Impressions

Long story short, impressions are the number of times your target audience comes across your advertisement.

This metric helps you understand how frequently your product is seen by targeted audiences. You should always aim for high impressions, as they signify more visibility.

However, if high impressions aren’t leading to increased sales, you should introduce necessary changes in your ad strategy.

2. Click-Through Rate (CTR) 

CTR is the percentage of viewers who click on your ad after seeing it. If your ad yields a healthy CTR of 0.5% or higher, it means your advertisement is turning heads.

On the other hand, if your CTR is lower than 0.3%, it’s a clear sign that your ad could use some tweaking. The main idea is to keep experimenting and find what resonates with your target demographic.

3. Conversion Rate

Now, let’s discuss the ad performance metrics that show the percentage of clicks that lead to sales or conversion rates. If your product page has a high conversion rate, i.e., 10-15% or higher, it’s successfully persuading visitors to click the “buy” button.

On the other hand, a poor conversion rate could suggest something is off. Check whether your product page needs a long-awaited update, your pricing is not competitive, or your reviews are mostly negative.

Screenshot of a web analytics dashboard showing total clicks, impressions, CTR, and average position over six months.

4. Advertising Cost of Sales (ACoS)

Put simply, ACoS is a metric that shows the percentage of your sales revenue lost to ad expenses.

A high ACoS can feel overburdening with lower profits, leaving less to reinvest in your business. It’s not very different from paying a high commission on every sale, which makes scaling your firm profitably a bit difficult.

If you’re maintaining a healthy ACoS of somewhere between 10% to 20%, that’s a good sign. Always aim for lower, as it means you’re earning more than what you spend.

5. Total Advertising Cost of Sales (TACoS)

As an Amazon seller, you will usually have other advertising costs outside Amazon PPC. Many even run a complete marketing strategy on a larger scale. These extra costs come under your Total Advertising Cost of Sales.

It gives a holistic view of your advertising budget, showcasing how your entire marketing strategy affects your bottom line. Like ACoS, a lower TACoS (5-10%) means you’re profitable. A high TACoS can be a red flag, suggesting your advertising strategy isn’t as effective as you expected. 

6. Cost Per Click (CPC) 

Up next, you should definitely monitor your CPC, i.e., how much you pay on average, every time a potential buyer clicks on your advertisement. 

If you’re getting anything less than $1.2 for every dollar you’re spending, that’s not a good sign. But why is this metric so important? An excessively high CTC shows you’re probably spending far more than needed without earning lucrative profits. 

7. Return on Advertising Spend (ROAS)

Last but not least, do you measure whether you are getting your money’s worth from the invested ads budget? Your ROAS can tell you precisely that.

Here’s the deal: if your ROAS looks sluggish, immediately change your advertisement strategy to avoid further losses. It could be anything: maybe your advertising isn’t reaching the target audience. Even worse, your bids appear too cheap to have a significant impact.

Whatever the case, low ROAS means your advertising isn’t closing as many sales as you targeted, i.e., a lost opportunity.

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Role of Monitoring in Amazon PPC Success

Learning how to continually optimize your PPC campaigns is essential, now more than ever.

The common narrative is that monitoring Amazon ad performance metrics is just a “nice thing to do.” However, it’s a strategic move that can direct your PPC campaigns toward profitability and growth.

Here’s why it is so important:

Discovering High-Performing Keywords

First things first, regular monitoring helps find which keywords perform best. This way, you can discover search phrases you never considered, which bring massive traffic and conversions. 

You can increase your ROI by focusing on these hidden, high-performing keywords.

Maximizing Returns on Investment

Monitoring gives solid proof so sellers can avoid making decisions solely based on gut feelings.

For example, closely examining metrics like ACoS can help you make more informed bid adjustments, keyword optimization, and budget allocation decisions for better PPC success.

Managing Underperforming Campaigns

Not every PPC campaign will bring results, and monitoring helps identify underperforming ones. Analyzing CTR, conversion rates, and ad spending gives you a clearer picture of which ads need to be tweaked or paused entirely.

This way, you can prevent your ad spending from going to waste and redirect your advertising budget to more successful methods.

Adapting to New Customer Trends

As we all know, consumer behavior keeps changing with time. As surprising as it sounds, keywords that performed great last month may not be as effective now.

Regular monitoring is key to spot emerging trends, seasonality, and high-performing search terms. Because of its flexibility, you can edit your campaigns as necessary to keep your ads effective and relevant.

Leveraging Voice Search Response

Not only can you monitor your campaigns using Amazon ad tracking, but you can also stay on top of voice search trends. For instance, you can observe how customers use voice to identify similar products and then modify running ads to ensure they’re the first ones shoppers come across while searching.

This way, you can always send the right message to the right people at the right moment.

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How To Monitor Amazon Ads

Learning how to monitor Amazon ads ensures your PPC campaigns run smoothly and efficiently.

Let’s look at the five steps you need to follow to succeed in this journey:

Step 1: Adjust Bids for Guaranteed Success

Amazon bids are basically auctions for ad placements, and your goal should be to aim for success without overpaying. In this case, placing the right bidding offer can make all the difference. 

Here’s what you should do:

  • Performance analysis: Keep a close eye on your data to identify which keywords yield the most revenue.
  • Strategic bidding: Increase bids on high-performing keywords to boost your ad’s exposure and click potential.
  • Bid pausing: Lower bids (or even pause) on underperforming keywords that waste your money on wasteful searches.

Step 2: Modify Ad Creatives as Needed

As evident, your ad creative is the first thing potential buyers notice. Does it catch their interest at a glance? If the answer is “NO,” you should immediately make the necessary changes. 

Try the following strategies:

  • A/B testing: Continuously experiment with different headlines, product photos, ad copy, and CTAs.
  • Click-through rate analysis: A high CTR shows that your ad is effective. A low CTR indicates that the creative needs revision.
  • Trend research: Ensure your ads align with seasonal trends, promotions, or new product features.

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Step 3: Analyze Different Components of The Ads

Even the smallest details in your advertisement strategy have a core purpose. Analyze the data to see which factors help you succeed or get in the way. 

Here’s what to focus on:

  • Search term reports: See exactly what shoppers searched for to see your advertisements. Use this information to discover new keywords and refine old ones.
  • Winning ads: Find out which advertising campaigns are performing the best, focus on them, and try to replicate their success in different ways.
  • Conversion rates: High clicks, but poor sales? That’s a bad sign. Maybe your ad targets the wrong audience, or your product description page needs to be optimized.

Step 4: Refine Your Ad Targeting

Poor targeting could be why your ads don’t convert as much as you’d like. 

Instead of spending your money at the wrong place, try these strategies:

  • Audience targeting: You can target your most relevant buyers by accurately selecting their demographics, psychographics, past buying behavior, etc.
  • Product targeting: Amazon’s advanced targeting helps sellers narrow down on specific products/categories, especially the ones where your ads can have maximum impact.
  • Negative keyword targeting: Add negative keywords to refine your ad targeting, which helps you avoid spending money on clicks that don’t lead to sales.

Step 5: Prioritize the Most Effective Keywords

Keywords make or break your ad campaigns’ success, so it’s crucial to identify the right ones for your products.

Look for these types for the best results:

  • Long-tail keywords: These terms are less competitive and more specialized (e.g., “scratch-proof racing boots for bikers”).
  • Branded keywords: If your brand is strong, bid on its name to hold your position while improving visibility.
  • Keyword match types: Experiment with wide, phrase, and exact match types to determine which works best.

Do you need help monitoring your Amazon PPC campaign? Schedule a free consultation with us at IG PPC today and start your journey toward winning big on the world’s largest e-commerce platform.

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Amazon Campaign Management Best Practices

Are you ready to boost your Amazon PPC advertising?

Here’s how to fine-tune your strategy and get more out of your advertising budget:

  • Product page optimization: Use high-quality photos, captivating descriptions, and competitive pricing to convert clicks into sales.
  • Automatic and manual targeting: Automatic targeting is a good place to start; let Amazon’s algorithms locate possible clients for you. But as you get the hang of it, start using manual targeting to refine your keyword approach and target exactly who you want to reach.
  • Segmentation: Make separate ad groups and campaigns according to product categories, price ranges, or performance. This gives you greater control and insights into optimizing each part separately.
  • Retargeting: Learn how to retarget buyers who look at your product but decide not to purchase. Use Sponsored Display ads to remind them of your product.

Following these best practices and regularly monitoring your ads can enhance your ad performance and yield maximum ROI.

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Frequently Asked Questions (FAQs)

Here are some of your most frequently asked questions about monitoring Amazon ads:

How Can I Tell if My Amazon Ad is Running?

Fortunately, Amazon makes this easy! Here are three simple steps to follow:

  • Go to the “Advertising” tab on your Seller Central account 
  • Select the “Campaign Manager option”; your active campaigns will be listed here. 
  • Look in the Status column; if it reads “Enabled,” your ad is running.

If your ad isn’t live, we recommend ensuring your campaign budget isn’t depleted.

How Often Should I Check My Amazon PPC Campaigns?

This is where things get a little more complex. Here’s what you should do:

  • When you launch a new campaign, check in daily to ensure everything goes as planned and collect preliminary performance data. 
  • Once you have a few weeks of data, you can switch to weekly or biweekly checks. 

Work with our Amazon PPC experts, who are trained in observing patterns, identifying underperforming terms, and always staying one step ahead.

How Do I Know How Much to Spend on Amazon Ads?

Honestly, “how much” you should spend depends on your goals and business model. 

However, here are some elements to consider:

  • Budget: Set a limit, but be reasonable. Underfunding your campaigns could affect their success.
  • Objectives: Do you want to raise brand awareness, enhance sales, or introduce a new product?
  • Competition: Gain insight into the market and determine how much your competitors spend.
  • Return on investment: You should match the amount you spend to the expected income you target to make.

At IG PPC, we maximize your ROI using advanced analytics to find the best budget allocation for each campaign.

Conclusion

Mastering Amazon ads is difficult, but the benefits outweigh the challenges. Here’s the key: stay proactive, keep testing, work with seasoned experts, and avoid taking risks. 

Following the strategies mentioned in this blog will teach you what your customers want, where to contact them, and how to make the most of your marketing dollars.

So, are you ready to make the most of your Amazon ads budget? Learn how IG PPC can help maximize your ROI and support your growth as a credible Amazon seller. Contact us today for a free consultation call.

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