Analyse results

Before you start we have 2 tips for you:

1. Wait for two weeks
   We recommend reviewing the results of a campaign after 2 to 4 weeks or after 80 to 100 clicks. Your campaign always needs a learning period to perform optimally. Moreover, this ensures you have valid data to analyse.
2. Determine your goal
   Determine the goal of your campaign before you start. What do you want to achieve and which data (or metrics) are associated with that? What does success look like for you? This will make analysing your campaign easier.

Useful Reports

In your sponsored products environment, various reports are available that provide insights into the performance of your campaigns. You can find them under the ‘advertising’ > ‘reports’ section at the top of your screen. These are indispensable for analysing and optimising your ad performance.

• Performance by Placement Report: This report provides insights into the key KPIs for each placement of a campaign.
• Attribution Report: Provides insights into the attribution of direct and indirect conversions within campaigns and shows the distribution of organic and sponsored sales.
• Bid Report: Offers insights into auction bidding and the results thereof.
• Results by Product: Displays the results for individual products in campaigns and ad groups.

Metrics

There are various metrics (or data points) that you could analyse. The importance of a metric depends on the objective of your campaign.

Impressions

This indicates how often your advertisement has been viewed. The number of impressions can be influenced by multiple factors, such as an adjustment of your CPC (Cost per Click), a change in search volume, or increasing competition. Impressions are an important metric if your goal is to reach as many people as possible, for example, when launching a new brand or product.

An impression is counted when your advertisement is at least 50% visible on the buyer’s screen for a minimum of 1 second.

Clicks & CTR (Click Through Rate) %

This indicates the relevance of your product and is therefore an important metric. When your goal is to generate sales, you will need to lead visitors to your product page. Reviews, product title and images, sales price, and delivery time can make your advertisement more relevant. Additionally, it is important that your advertisement matches the visitor’s search query. The higher your CTR %, the more visitors you will attract.

Costs & CPC (Cost per Click)

The costs you incur are determined by the number of clicks you generate, multiplied by your CPC. Several factors can influence this. The most obvious is increasing or decreasing the target ACoS for an automatic campaign, or adjusting your bids in the case of a manual campaign. Want to calculate your ideal ACoS? Use our handy ACoS calculator.

ACoS & ROAS

ACoS (Advertising Cost of Sales) and ROAS (Return on Ad Spend) are important metrics used to measure the effectiveness and efficiency of advertising campaigns. They help determine the profitability of advertising expenditures. Not only do they help you evaluate performance, but they also assist in making strategic decisions about budgeting, bidding strategies, and ad optimisation.

A change in your ACoS can result from campaign optimisations, such as adjusting your CPC (i.e., your bid in the auction), adding or excluding placements, or pausing or activating items within your campaign. It can also be due to a change in your CTR% or conversion rate. Because:

• The higher your CTR, the more visits you get, and the cheaper your CPC.
• The higher your conversion rate, the more sales you get from the same number of clicks.

Influencing your ACoS or ROAS is therefore not just about tweaking the settings of sponsored products.

Conversion Rate and Sales

The conversion rate is crucial for measuring the success of your advertising campaigns. It provides insight into how well your adverts result in actual sales and thus the efficiency of your advertising spend. It also helps you identify which elements of your campaign are working well and which need adjustment. Additionally, it answers the question: what is the behaviour of your visitors after they have viewed your product page? Increase your conversion rate by making your product more appealing. How? By, for example, analysing competitors, using reviews to supplement your product information, and improving product images. The higher your conversion rate, the more sales you will achieve for the same amount of money.

Analysing Results by Level

The results of the campaign can be analysed at three levels:

1. At campaign level
2. At product level
3. At placement level

Per Campaign

When you open the sponsored products environment, you land on your campaign overview. Here you can see the results of all campaigns together and per campaign. A quick glance here will quickly show you which campaigns need your attention, whether in a negative or positive sense. In most cases, we look at ACoS, costs, and revenue here. A deeper dive into other KPIs often happens at the product and/or placement level.

Per Product

You will see a similar overview, but for the specific campaign you selected. Under products, you will see the results per product. You can quickly see which products have a lagging ACoS and which are performing well. An analysis of the other KPIs can help you find a cause. What stands out and where do you see the biggest differences? If you notice that the conversion rate for certain products is lagging, try to analyse why this might be. Is it your price? Is your product description not detailed enough? Have negative reviews been received?

It could also be that your CPC is too high to achieve a healthy ACoS. In most cases, this is a result of lower relevance, i.e., a low CTR. Additionally, it might stem from high competition in the auction, driving up your CPC.

Per Placement

If you scroll further, you will find the results per placement. Ads can be displayed in three places: on a product page, a category page, or in search results for specific keywords. Under ‘placements’, you see the status and results per specific placement, along with the previously set bids. Here you analyse which placements are performing well and whether there are costly placements with few to no conversions. With the column chooser, you can add metrics to the columns.

The core of a well-running campaign is being visible in the right places and thus getting placements. Therefore, we recommend regularly analysing your results in different placements. It might be that there are placements that do not yield the desired result. In other words: high costs, but few to no conversions. Identify which these are and determine whether the keywords are relevant to your product. For example, does the keyword appear sufficiently in your product information? It might also be that the consumer simply does not find your product relevant for this search query.