This episode explores the evolving challenges and strategies for achieving profitability in Amazon advertising. Against the backdrop of rising CPCs and increased competition, the conversation highlights the shift from solely focusing on ROAS to a more comprehensive profit-minded approach. More significantly, the discussion delves into the complexities of tracking profitability at the product and campaign levels, acknowledging the limitations of Amazon's data and the impact of cross-selling. For instance, a case study illustrates how a brand's failure to account for varying product margins led to unexpected losses despite high overall revenue. The hosts discuss methods for bridging the gap between advertising data and profitability analysis, emphasizing the importance of setting target ACOS per product and campaign, and considering the role of off-Amazon traffic generation. Ultimately, the episode underscores the need for a holistic approach to Amazon advertising, integrating various data points and adapting strategies to account for the evolving dynamics of the marketplace. This means for Amazon sellers a greater need for sophisticated analytics and a deeper understanding of their product's profitability across different sales channels.
