This podcast episode explores the debate surrounding the use of ACOS as a vanity metric in Amazon advertising. While ACOS is important to a certain extent, it is not the only metric that should be monitored. The hosts discuss the negative impact of sponsor display campaigns on organic sales and ACOS, emphasizing the importance of strategic ad type allocations. They also highlight how sponsor display campaigns can lead to inflated ad costs of sales by continuously raising bids on low ACOS keywords. The episode delves into the relationship between ACOS and Ad Cost of Total Sales, demonstrating the correlation between ad sales and total sales. The hosts provide insights into using scatter plots to analyze this correlation and discuss the correlation between ad sales and organic sales. The episode concludes by emphasizing the importance of understanding sales attribution and optimizing campaigns to drive results.
