Amazon CPC advertising effect quantification: strategy selection from macro and micro perspectives
Advertising optimization on the Amazon platform is an integral part of the operator’s daily work. For quantitative evaluation of advertising effects, we can usually start from two perspectives: macro and micro. Quantification from a macro perspective focuses on the formulation and adjustment of overall strategies, while a micro perspective focuses on performance optimization of specific advertising campaigns.
Quantification from a macro perspective
Quantification from a macro perspective is usually performed by middle and senior managers. These managers need to have the ability to analyze comprehensive data and cannot rely solely on a single indicator such as ACoS (advertising cost of sales), order amount or quantity to evaluate advertising effectiveness. Instead, they need to consider comprehensively from multiple dimensions such as brand promotion, sales growth and sales volume increase. Especially for the increase in sales, its importance is not only reflected in the increase in market share, but also related to the enhancement of product list ranking and brand awareness.
In order to better evaluate advertising effects from a macro perspective, operators can learn from the ideas of the Boston Matrix and use quadrant analysis to screen and optimize different advertising groups. By drawing a bubble chart, with ROI (return on investment) as the horizontal axis, “single order cost” as the vertical axis, and product sales as the circle area, the effects of different advertising activities can be clearly visualized. Based on this analysis framework, operators can identify low-value areas (such as the I quadrant) and optimize them to a more favorable position (such as the IV quadrant) by adjusting strategies.
Microscopic angle quantification
In contrast, quantification from a micro perspective is mostly implemented by front-line operations personnel. Their work focuses on optimizing campaign-specific performance metrics such as ACoS, cost-per-click bidding, and ad budget. For junior operators, the main goal of optimization is often to control ACoS within a reasonable range and increase new product exposure through automatic or manual advertising. However, when the role changes to management, it is necessary to break away from the limitations of a single dimension and examine advertising effectiveness from a broader perspective.
Conclusion
Whether you use a macro or micro perspective to quantify advertising effects, the core lies in understanding the fundamental purpose of advertising and marketing and formulating corresponding strategies accordingly. Through continuous practice and learning, operators can not only improve their personal skills, but also bring greater benefits and development opportunities to the enterprise.
This article combines the views of two references and aims to comprehensively introduce the method and application of Amazon CPC advertising effect quantification.