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ARTICLES
Unlocking the secrets to Amazon's profitability
ROAS is one of the first metrics Amazon teams look at when evaluating advertising performance. It is useful, familiar, and easy to compare.
But it does not tell the whole story.
A campaign can generate a strong return on ad spend while the product behind it is becoming less profitable. Advertising can increase sales while inventory coverage gets tighter. A product can convert well but still create weak margin after fees, refunds, and other costs.
The better question is not simply:
How much revenue did advertising generate?
It is:
What did that advertising activity contribute to the wider business?
ARTICLES
Unlocking the secrets to Amazon's profitability
ROAS is one of the first metrics Amazon teams look at when evaluating advertising performance. It is useful, familiar, and easy to compare.
But it does not tell the whole story.
A campaign can generate a strong return on ad spend while the product behind it is becoming less profitable. Advertising can increase sales while inventory coverage gets tighter. A product can convert well but still create weak margin after fees, refunds, and other costs.
The better question is not simply:
How much revenue did advertising generate?
It is:
What did that advertising activity contribute to the wider business?
GUIDES
Unlocking the secrets to Amazon's profitability
ROAS is one of the first metrics Amazon teams look at when evaluating advertising performance. It is useful, familiar, and easy to compare.
But it does not tell the whole story.
A campaign can generate a strong return on ad spend while the product behind it is becoming less profitable. Advertising can increase sales while inventory coverage gets tighter. A product can convert well but still create weak margin after fees, refunds, and other costs.
The better question is not simply:
How much revenue did advertising generate?
It is:
What did that advertising activity contribute to the wider business?