Why You Should Pay Close Attention To ACOS In Amazon Advertising For KDP ?

Learn Why You Should Pay Close Attention To ACOS In Amazon Advertising For KDP

 

You are running Amazon Advertising for KDP in the first place because you want to generate more sales for your books.

However, measuring the sales coming from your Amazon Advertising effort alone is not sufficient.

The reason is because you have to spend advertising fees in order to bring in the sales.

Therefore, you should be paying very close attention of how much money you have spent in order to generate sales.

This would allow you to know if your Amazon Advertising is giving you a positive ROI (Return On Investment) or not.

Ideally, you don’t want to have your advertising cost higher than the profit you can make from your sales.

Fortunately, there is a metric inside your Amazon Advertising dashboard which tells you how much you have spent in ads to generate sales from the platform.

What Is ACOS In Amazon Advertising AMS

This important metric is called ACOS which stands for Advertising Cost Of Sales.

It is given by the formula: ACOS = (total ad spend / total ad sales) x 100%.

If you get a ACOS of 100%, it simply means your total ad spent amount is same as the total sales amount.

In this case, you might think that you are breaking even but the actual fact is you are losing money.

The reason is because the total ad sales is calculated from your KDP book selling price and not your final royalty. There are still other costs you need to deduct from the book selling price such as Amazon royalty and the printing cost (for KDP paperback).

So you are actually spending more money on ads compared to the profit you are getting in this example: ACOS of 100%.

With that being said, the lower the ACOS, the more profit into your pocket.

So, your ultimate aim with Amazon Advertising for KDP is to get the ACOS as low as possible, preferable less than 30%.

You might be wondering how to get a low ACOS?

The key criteria is you need to have high conversion in sales from the clicks generated through the advertising platform.

In order to have high conversion, firstly, you must have your book appealing enough in your book cover and the book description.

Secondly, you must target the right keywords in Amazon Advertising so your book can appear in front of the right audience.

People would buy your book only if it is what they are looking for.

Good news is you can leverage on this powerful tool called “Publisher Rocket”, formerly known as “KDP Rocket”.

It is created by Dave Chesson – a bestselling author and book marketing consultant to fellow bestselling authors.

Publisher Rocket would help you easily uncover keywords that book buyers actually type into Amazon.

Using Publisher Rocket Or KDP Rocket To Find Profitable Keywords For Amazon Advertising AMS

Besides that, it will help find you profitable keywords for your KDP book Amazon Advertising campaign without you doing the guesswork.

Another cool thing is it also helps you discover bestselling book categories in seconds so you can use them for your books to have the chance become bestseller.

Publisher Rocket currently only costs one-time payment of $97 for lifetime and does not have monthly subscription (at the moment of writing this post).

This means you only need to pay once and you can use the powerful tool for unlimited number of times and for lifetime without paying again.

The price of $97 one-time is worth paying when compared to the (ROI) Return Of Investment you could get out of it in the long-term for your Amazon KDP business.

In a nutshell, these are what you get:

  • Complete access to Publisher Rocket tool
  • All future updates included
  • Research profitable keywords
  • Discover bestselling categories
  • Generate thousands of Amazon advertising profitable keywords without guesswork
  • Support by Publisher Rocket team

Click Here To Secure Your Lifetime Access To Publisher Rocket With One-Time Pricing

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