Amazon Ads Metrics to Track for Clients: A Guide for E-Commerce Sellers and Agencies

Amazon Ads are a crucial component of any modern e-commerce marketing strategy. However, to make the most of these ads, tracking the right metrics is essential. Without the right data, you’re essentially shooting in the dark.

For agencies managing Amazon Ads campaigns for clients, understanding which metrics matter most can be the difference between an underperforming campaign and one that truly drives growth.

In this article, we’ll explain which Amazon metrics to track and how to use those to your advantage as an Amazon seller service provider agency. Let’s begin.

What is Amazon Ads?

Amazon Ads is a comprehensive platform that enables sellers to advertise their products to potential customers at various stages of the buying journey. From Sponsored Products to Sponsored Brands and Video Ads, the platform offers several ad types designed to capture consumer attention in different ways.

The beauty of Amazon Ads lies in its ability to target users based on their shopping behavior, interests, and search history. This allows sellers to create highly tailored ads that increase the chances of conversion.

But before diving into the metrics that matter most, it’s important to understand where you can find the data to analyze.

Amazon Ads Metrics vs. KPIs: Understanding the Difference

In Amazon Ads, metrics like impressions, clicks, and cost-per-click (CPC) are essential for measuring performance. However, metrics are not always the same as key performance indicators (KPIs).

Metrics are raw data points that tell you how an ad campaign is performing on a surface level. While useful, they don’t always tell you the full story. KPIs, on the other hand, are metrics tied directly to your business goals, like increasing revenue or market share.

For example, a high number of clicks might look good, but if those clicks aren’t resulting in sales, they aren’t helping your business.

Essential Amazon Ads Metrics to Track for Clients

1. Clicks

Clicks are one of the most basic yet important metrics in Amazon Ads. They represent the number of times users clicked on an ad. While clicks alone don’t guarantee success, they offer a crucial first step in the buyer’s journey.

The more clicks an ad receives, the higher the chances of converting that interest into a sale. Clicks are a strong indicator of whether your ad is resonating with potential customers. If your client’s ads are receiving a high click volume, it’s a good sign that the targeting and creative are working well.

2. Conversion Rate

Conversion rate is arguably the most important metric for any e-commerce campaign. It shows the percentage of clicks that result in a sale. This metric directly reflects how well your ad is turning interest into action.

If your client is getting a high number of clicks but a low conversion rate, it could indicate issues with product listings or ad targeting. Perhaps the product page isn’t optimized, or the ad is attracting the wrong audience.

3. Cost Per Conversion (CPC/CPA)

Cost per conversion is a measure of how much you’re spending to acquire a customer. Lowering the cost per conversion without sacrificing volume is a key objective for most campaigns. This metric is essential for understanding the efficiency of your ad spend.

For clients, this number is crucial because it helps assess whether their advertising investment is yielding profitable results. If the cost to acquire a customer is too high, then the campaign may not be sustainable in the long term.

4. CPC (Cost Per Click)

CPC is a metric that shows how much you pay for each click on an ad. While it’s a fundamental metric, it can vary significantly depending on the competitiveness of your product’s keywords and category.

A lower CPC means you’re getting more traffic for your advertising budget. However, a higher CPC doesn’t always mean a bad thing. If a higher CPC is leading to more qualified traffic and better conversion rates, it might still be worth the investment.

5. CPM (Cost Per Thousand Impressions)

Cost per thousand impressions (CPM) measures the cost of displaying your ad 1,000 times. This metric is typically used for brand awareness campaigns, where the focus is on visibility rather than direct sales.

For clients focused on long-term growth, brand awareness campaigns can be just as important as conversion-focused ads. Understanding CPM helps agencies assess whether their ad spend is getting the desired exposure.

While CPM isn’t always a direct indicator of immediate ROI, it’s vital for assessing the long-term impact of your brand presence in the Amazon marketplace.

6. CTR (Click-Through Rate)

CTR is the ratio of clicks to impressions. It measures how often someone who sees your ad actually clicks on it. A high CTR is a strong indicator of ad relevance and audience engagement.

If your CTR is low, it suggests that your ad isn’t compelling enough to drive interest. Seller Contacts helps refine targeting and creative strategies by analyzing product performance data and identifying areas for improvement.

7. Impressions

Impressions show how many times your ad is displayed. While impressions alone don’t guarantee conversions, they are essential for understanding your ad’s reach and visibility.

High impressions, when paired with good conversion rates, indicate that your ads are being seen by the right audience. For clients focused on increasing brand visibility, high impressions are often a key indicator of success.

8. Sales

At the end of the day, sales are the ultimate metric. Sales generated from Amazon Ads are the true measure of campaign success.

This metric is crucial for clients because it directly reflects their return on investment (ROI). Tracking sales allows agencies to assess the impact of their advertising efforts and determine whether campaigns are generating the expected revenue.

9. Units Sold

Units sold refers to the number of products purchased as a result of ad campaigns. This metric is particularly useful for tracking product movement and inventory levels.

For clients, units sold are a direct indicator of whether their products are gaining traction with customers. A high number of units sold may also signal the need for inventory adjustments or production scaling.

10. Video View Rate

For clients using video ads, the video view rate measures the percentage of people who watched the video compared to those who were served the ad. A high video view rate indicates that the video content is engaging and capturing the audience’s attention.

Video ads are increasingly popular on Amazon, and clients looking to engage their audience through visual storytelling can use this metric to gauge success.

11. Video Completes

This metric tracks how many people watched a video ad all the way to the end. A high video completion rate indicates that your video content is compelling enough to hold viewers’ attention.

For clients using video ads as part of their campaign strategy, understanding video completes is essential for measuring engagement and brand recall. If your video completion rate is low, it might be time to adjust the content or targeting to increase engagement.

Turning Data Into Actionable Insights: How to Optimize Campaigns

Analyzing Data and Adjusting Strategies

Collecting data is only half the battle. The true value lies in transforming that data into actionable insights that help optimize ad campaigns. This process involves reviewing metrics like conversion rate, CTR, and CPC, among others, and identifying patterns or issues that need attention.

For example, if your CPC is increasing but your conversion rate remains low, it’s a clear sign that you’re spending more to acquire customers without seeing the desired returns. This can lead to an adjustment in keyword targeting, bidding strategies, or even product pages.

Understanding the Importance of A/B Testing

One of the most effective ways to optimize Amazon Ads campaigns is through A/B testing. This process involves testing two versions of an ad or landing page to see which performs better. By experimenting with different ad copies, images, or keywords, agencies can identify the combinations that yield the best results.

A/B testing allows you to test specific variables, such as:

Ad copy (e.g., using different calls-to-action)
Product images (e.g., highlighting different product features)
Keywords (e.g., testing broad vs. exact match)
Ad types (e.g., testing Sponsored Product ads vs. Sponsored Brand ads)

By regularly conducting A/B tests, you can continuously improve the performance of your campaigns and ensure they are always optimized for the best possible return.

Ad Budget Allocation: Finding the Right Balance

Budget allocation is one of the most significant factors influencing the success of Amazon Ads campaigns. If your budget isn’t allocated wisely, it can result in overspending without achieving the desired results. Conversely, underfunding a campaign can limit its potential reach and impact.

Effective budget allocation requires a balance between:

High-performing ads: Allocate more budget to the ads that are already driving strong sales and ROI.
Test ads: Even campaigns that aren’t yet performing as expected can benefit from some budget, allowing you to experiment and learn what works best.
Seasonal adjustments: During peak shopping seasons like Black Friday or Prime Day, increase ad budgets to capture more traffic and sales.

Tracking Return on Ad Spend (ROAS)

Return on ad spend (ROAS) is a metric that every e-commerce business should track closely. It shows how much revenue you’re generating for every dollar spent on ads. A high ROAS means that your ad spend is effectively driving revenue.

A low ROAS, however, suggests that your campaigns are not driving enough revenue to justify the ad spend. In these cases, you’ll need to reevaluate your targeting, bidding strategy, or product selection.

Scaling Campaigns: When and How to Scale

Once you’ve optimized your campaigns and are seeing solid results, it’s time to think about scaling. Scaling your campaigns involves increasing your ad spend to reach a larger audience while maintaining (or even improving) your ROAS.

However, scaling isn’t always as simple as just increasing the budget. It requires careful analysis and strategic planning. Here are a few strategies to scale effectively:

Increase bid amounts for high-converting keywords and ad types to capture more impressions.
Expand targeting to reach new customer segments.
Broaden your product offering to include more SKUs in the ads, driving higher sales volume.

Before scaling, it’s crucial to test new ad creatives and keywords to ensure they will perform well.

Best Practices for Reporting: How to Create Clear, Actionable Reports for Clients

The Importance of Reporting for Clients

Transparent reporting is crucial when working with clients. It not only helps them understand the performance of their campaigns, but it also builds trust between the agency and the client. Effective reports allow clients to see exactly where their money is going and what kind of returns they are receiving in exchange.

A well-designed Amazon Ads report should include:

A breakdown of key metrics (e.g., clicks, impressions, conversions, ROAS)
Trends over time to show progress or areas of concern
Recommendations for optimization (e.g., changes to ad copy, targeting, or budget allocation)

Reports should also be easy to understand and actionable. Using overly technical language can alienate clients who aren’t familiar with Amazon Ads.

Setting Expectations and Reporting ROI

It’s important to set clear expectations with clients about what success looks like. ROI can vary depending on the client’s business goals, product type, and marketing strategy. For some, driving traffic and increasing impressions might be the primary goal, while others may focus on maximizing conversions and driving sales.

Tracking and reporting ROI gives clients an understanding of how effectively their ad spend is translating into tangible business results. A well-structured report should focus on the most important KPIs relevant to the client’s objectives and showcase the value your agency is delivering.

Frequency of Reporting

The frequency of reporting depends on the client’s needs and the type of campaign being run. For high-budget or time-sensitive campaigns, clients may want weekly reports, while for longer-term campaigns, monthly reports may be more appropriate.

Regular reports provide valuable insights into ongoing performance and can help detect any issues early, allowing for timely interventions and optimization.

Using Seller Contacts to Enhance Campaign Performance

While Seller Contacts isn’t directly linked to Amazon Ads management, its vast database of e-commerce sellers provides invaluable insights that can help refine your overall marketing strategy. By accessing detailed information about sellers, their product offerings, revenue, and geographical locations, you can better understand the market and identify opportunities for more precise targeting in your Amazon Ads campaigns.

For instance, if you’re running campaigns for products in a particular niche, Seller Contacts can help you identify similar Amazon sellers who are operating in that space. By analyzing their strategies and product focus, you can adjust your ads to more effectively reach the right audience or even collaborate with sellers in your industry to co-market products or share insights.