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The Good, The Bad and The Ugly Of CPM Advertising on Amazon

Seller Sessions · with Ritu Java · April 7, 2023 · 34 min

Summary

This episode provides a crucial deep dive into CPM advertising on Amazon, dissecting its complexities and revealing how to interpret metrics like ACoS and TACoS accurately. It equips Amazon sellers with the knowledge to identify misleading data, understand the true impact of VCPM campaigns on organic sales, and leverage CPM advertising strategically for brand growth without cannibalizing profits.

Key takeaways

Themes

amazon & marketplacespaid acquisitionanalytics & attribution

Topics covered

amazon cpm advertisingvcpm campaignsamazon dspacos and tacoslast-touch attributionviewable impressionsppc optimizationorganic sales cannibalization

Episode description

The Good, The Bad and The Ugly Of CPM Advertising on Amazon Ritu Java joins the show and uncovers some shady looking metrics to look out for… Offering crazy low ACoS and highly Questionable TACoS. Don't worry, we got you. Ritu will show you step by step on how to break this down to get to the real numbers. Also covered in this show: What is CPM advertising? What are Viewable Impressions? What are the pros and cons? Can VCPM campaigns cannibalise your organic sales? Why do VCPM campaigns have high ROAS? Last touch attribution in Amazon advertising Understanding reporting for CPM based advertising Similarities with DSP advertising Impact of VCPM ads on TACoS Using CPM advertising for the right reasons Ritu Java began her eCommerce journey as an Etsy seller over a decade ago and now serves as the CEO of PPC Ninja, an esteemed software tools and services provider for 6 to 8-figure brands, specialising in DSP and Sponsored Ads management. A passionate data science and advertising aficionado, Ritu has led numerous PPC mastermind programs, workshops, and webinars, while empowering hundreds of Amazon sellers with her expertise in PPC. As someone who is respected and valued for her insights, Ritu has shared her knowledge through contributions to over a hundred podcasts, webinars, blogs, and conferences, including the prestigious Prosper Show, Billion Dollar Seller Summit, Global Sources Summit, and PowWow, among others.

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Frequently asked about this episode

What does this episode say about amazon & marketplaces?
Understand that seemingly low ACoS and high ROAS in CPM campaigns can be misleading due to Amazon's last-touch attribution model; focus on holistic metrics like TACoS.
What does this episode say about paid acquisition?
Analyze "viewable impressions" to gauge the true reach and effectiveness of your CPM campaigns, as not all impressions contribute equally to brand visibility.
What does this episode say about analytics & attribution?
Evaluate whether VCPM campaigns are cannibalizing organic sales by meticulously tracking and attributing sales across different advertising efforts.
What does this episode say about amazon & marketplaces?
Utilize CPM advertising for strategic goals like brand awareness and reach, rather than solely focusing on direct sales, and integrate it into a comprehensive advertising strategy.
What does this episode say about amazon & marketplaces?
Learn to "break down the real numbers" by understanding how Amazon reports CPM-based advertising and comparing it to DSP advertising for a complete picture, as taught by Ritu Java.

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