Ad Spend:
The total amount spent on advertising, like PPC, sponsored Display etc.
Ad Sales:
This represents the total amount of sales directly attributed to or associated with specific advertising campaigns on the Amazon platform. These sales are credited to the ads based on customer clicks on the ads and subsequent purchases within a 14-day period after clicking. This includes sales from other variant SKUs and not only the advertised SKU.
This metric allows you to track and measure the effectiveness of Amazon ad campaigns in driving actual sales. It helps in understanding how much revenue is directly generated from the ad clicks and assists in evaluating the return on investment (ROI) for the advertising efforts.
Same SKU Ad Sales:
The "Same SKU Ad Sales" metric on Amazon refers to the total sales generated from ads for the same SKU as the product being advertised. This metric specifically measures the revenue generated by sponsored ads or paid promotions for a particular product or item that corresponds to the SKU advertised.
In simpler terms, when an Amazon seller or vendor runs sponsored ads or paid campaigns for a specific product, the sales attributed directly to those advertisements for that same product's SKU are tracked and reported as "Same SKU Ad Sales." and if someone buys a different SKU it will show up under Ad Sales.
Organic sales:
Purchases made by customers who discover and buy products without direct influence from paid advertisements or promotions. These sales occur naturally, driven by factors such as product visibility, customer reviews, etc.
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βThis is calculated by taking "Order Gross" ( Sales before refunds/adjustments) and deducting the "Same SKU Ad Sales."
TACos:
Tacos stands for "Total Advertising Cost of Sales" and is a measurement of your reinvestment into Amazon Ads.
ACos:
Acos stands for "Advertising Cost of Sale" and is a more specific measurement of how your ads are performing without considering total Amazon sales or profit margins.
Let's start by looking at how we figure out TACoS and ACoS.
Tacos, which stands for Total Advertising Cost of Sales, measures your ad spend compared to your total sales (Ad Spend/Total Sales). ACoS, or Advertising Cost of Sales, looks at your ad spend versus the sales generated directly from those ads (Ad Spend/Ad Sales). Essentially, TACoS gives a broader view by considering all your sales, while ACoS focuses solely on sales from ads.
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If you want to understand how your ad spend impacts your entire business and affects your profit, TACoS is the metric to check. But if you're more interested in seeing how well each specific ad campaign is performing on Amazon, then ACoS is more helpful.
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Think of TACoS as a measure of how much you're reinvesting in your business overall. A lower TACoS means you're being less aggressive with reinvestment. On the other hand, ACoS shows how efficiently your ads are working. A lower target ACoS indicates better efficiency.