Running ads on Amazon can feel like stepping into a vast marketplace with endless possibilities—and a lot of confusing numbers. Which metrics should you track? Which ones actually help you grow sales and avoid wasting money?
In this guide, we’ll simplify the world of Amazon advertising metrics. We’ll group them into three categories that match how advertisers really think: visibility, engagement & sales, and profitability. By the end, you’ll know exactly how to measure success and make smarter decisions for your brand.
Why Metrics Matter in Amazon Advertising
Metrics are more than just numbers—they’re your map to profitable growth. Without them, you’re spending blindly. With them, you can:
- Spot what’s working (and what’s wasting money)
- Adjust budgets and bids confidently
- Identify new opportunities
- Prove results to stakeholders or clients
The Three Types of Metrics Advertisers Should Track
Let’s organize Amazon advertising metrics in a way that makes sense for beginners—and pros alike.
A. Visibility Metrics: “Am I Getting Seen?”
These metrics help answer whether your ads are showing up and attracting attention.
Impressions
What it is: The number of times your ad appears in search results or on product pages.
Why it matters: High impressions mean visibility. Low impressions might indicate low bids, narrow targeting, or budget limits.
Example: You run an ad for “Yoga Mat” and get 80,000 impressions in a week. That’s solid visibility in a competitive market.
Clicks
What it is: The number of times shoppers click your ad.
Why it matters: Clicks reflect interest. No clicks = no chance to convert to sales.
Click-Through Rate (CTR)
Formula: Clicks ÷ Impressions
Why it matters: Low CTR suggests your ad isn’t compelling. This could mean:
- Your images or titles aren’t attractive enough
- Your keywords are too broad or irrelevant
- Your ad placement is poor
Case Study: Two keywords in a Sponsored Products campaign:
- Keyword A → 10,000 impressions, 200 clicks → CTR = 2%
- Keyword B → 10,000 impressions, 20 clicks → CTR = 0.2%
Clearly, Keyword A is more relevant and should receive more budget.
Cost-per-Click (CPC)
What it is: The average cost you pay for each click on your ad.
Why it matters: Rising CPCs can eat into profit margins. You want efficient bids that keep costs low while still winning visibility.
Example: Keyword A costs $2.50 per click, while Keyword B costs $0.80. If both convert equally well, focus budget on the cheaper option for better ROI.
B. Engagement & Sales Metrics: “Am I Selling?”
Once shoppers click, these metrics show whether they’re buying.
Orders
What it is: The number of purchases attributed to your ad clicks.
Why it matters: Orders are the ultimate goal. No orders = wasted spend.
Sales
What it is: The total dollar value of purchases tied to your ads.
Why it matters: This figure connects directly to your revenue goals.
Example: Your top keyword drives $10,000 in sales from $1,200 in ad spend. That’s a strong result worth scaling.
Conversion Rate (CVR)
Formula: Orders ÷ Clicks
Why it matters: A low CVR means shoppers click but don’t buy. Reasons might include:
- High price vs. competitors
- Poor product images or weak bullet points
- Low review ratings
Example: 200 clicks generate 20 orders → CVR = 10%. That’s solid performance in most categories.
C. Profitability Metrics: “Am I Making Money?”
These metrics tell you if your advertising spend is paying off.
ACOS (Advertising Cost of Sales)
Formula: (Ad Spend ÷ Sales) × 100
Why it matters: Shows how much you spend to earn $1 in sales. Lower ACOS means better efficiency.
Case Study: You spend $2,000 and generate $8,000 in sales. ACOS = (2,000 / 8,000) × 100 = 25%. If your profit margin is 30%, this leaves you profitable. If it’s only 20%, you’re losing money on ads.
ROAS (Return on Advertising Spend)
Formula: Sales ÷ Ad Spend
Why it matters: The opposite of ACOS. Higher ROAS = more revenue from each dollar spent.
Example: From the same case above, ROAS = $8,000 ÷ $2,000 = 4x. For every $1 spent, you earn $4 back.
New-to-Brand (NTB)
What it is: The percentage of customers purchasing from your brand for the first time.
Why it matters: Essential for measuring brand growth, not just short-term sales. Mostly available in Sponsored Brands, Sponsored Display, and DSP.
Example: Out of 100 orders, 40 are new-to-brand. That’s a 40% NTB rate, indicating strong brand acquisition.
How to Analyze Metrics Together
Here’s how beginners should read Amazon reports:
- Start with visibility → Check Impressions and CTR
- Move to engagement → Look at Orders and CVR
- Finally, assess profitability → Review ACOS and ROAS
Case Study: Putting It All Together
Imagine you run a Sponsored Products campaign for a Stainless Steel Water Bottle:
| Metric | Result |
|---|---|
| Impressions | 50,000 |
| Clicks | 1,000 |
| CTR | 2% |
| Spend | $2,000 |
| Sales | $8,000 |
| Orders | 160 |
| ACOS | 25% |
| ROAS | 4x |
| CVR | 16% |
Analysis: The campaign is profitable (25% ACOS). CTR and CVR are strong, suggesting your product page is performing well. You might increase bids slightly to grow impressions further.
Key Tips for Beginners
- Focus on 4-5 core metrics first—don’t try to track everything at once
- Don’t panic over one bad day—watch trends over time
- Always know your profit margins to set target ACOS or ROAS
- Check reports weekly for smarter decisions
Conclusion
Understanding your metrics is the first step to Amazon success. Track visibility, monitor engagement, and protect your profits. Whether you’re new or scaling up, data is your greatest advantage.
What’s Next on AdmazonIQ?
We’re just getting started! Stay tuned for more deep dives into Amazon advertising strategies, tips, and real-world case studies to help you decode, optimize, and dominate Amazon Ads.
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