Analytics Interpretation

Spend goes up and Sales goes up

Spend goes up and Sales don’t grow, CVR goes down

Cost Per Session goes up or down

CTR is Low

Sales go up but Profit goes down

Spend goes down and sales go down

CVR goes down

CPA: is it possible to be profitable?

Is profit per unit too low?

% of Sales from PPC vs Organic

Analytics Interpretation

Spend goes up and Sales goes up

• This is a common outcome when a Brand is scaling. CVR is also expected to go down at this time due to increased traffic to your listing but Sales isn’t expected to pick up. However, when you cut out all of the bad traffic and start creating keyword campaigns with negatives and lower your bids, CVR will start picking back up.

Spend goes up and Sales don’t grow, CVR goes down

• The reasons why sales are not increasing and CNV is going down when PPC spending and Sessions are up are.

  • Wrong targets (included)
  • We target the high-competition KWs and we are not competitive. Top KWs in the niche. Reasons:
    • Delivery date delayed
    • Price
    • Bad reviews
    • Lower Rating
    • Bad listing
    • Unclear image
    • Missing any badge (Best seller, Amazon choice, Coupon, lightning deal) compared to competitors.

• Every single time you make a change on the listing, you have to document the date and what change was made.

  • For example, you increased the price on July 5th and then your conversion rate suddenly goes down Your documentation will help you determine the cause of the sudden drop in conversion rates.

  Cost Per Session goes up or down

  1. Ad spend goes up + Cost per session goes UP = Overspending on driving traffic

     • This will happen commonly when we're scaling because as PPC spend goes up, we expect the cost per session to go up as well since we're not spending efficiently. Some of those keywords that we're launching, we don't know if they're gonna work or not which is okay.

     • However, when we're trying to cut down on all of the inefficient stuff: adding negatives, lowering bids, removing bids by placement, etc., the Cost per Session should go down; otherwise, we're cutting the wrong things like adding negatives to the wrong things or we're lowering the wrong bids.

     • This will happen commonly when we're scaling because as PPC spend goes up, we expect the cost per session to go up as well since we're not spending efficiently. Some of those keywords that we're launching, we don't know if they're gonna work or not which is okay.

     • However, when we're trying to cut down on all of the inefficient stuff: adding negatives, lowering bids, removing bids by placement, etc., the Cost per Session should go down; otherwise, we're cutting the wrong things like adding negatives to the wrong things or we're lowering the wrong bids.

     

     b. Ad spend goes up + Cost per Session STAYS THE SAME = You’re doing a very good job launching the ads!

     c. Ad spend stays the same + Cost per Session goes DOWN = Organic ranking improved

     d. Ad spend stays the same + Cost per session goes UP = Organic ranking was lost

     Want a Quick Chat for you Brand ? Connect me here 👉

     CTR is Low

     • CTR is an expected outcome of PPC Spend going up because you're showing your product to people and they make like it or they may not.
     • If it continues to get lower and stays at a very low point, this could mean that people are seeing your product in the search and they're not interested in it. You're running ads and launching more campaigns but you're not getting traction.

     

     • If the click-through rate goes down and PPC spend also goes down, it means you're cutting down but you're supposed to have a higher click-through rate. If you're getting a lower click-through rate, it means one of the components on your listing on the search page is a problem: reviews, the price, the main image.

     Sales go up but Profit goes down

     • This is a normal situation for scaling because as we increase our spend to launch a lot more campaigns and they’re working, they will generate us sales.
     • There will be a certain percentage though which won’t generate sales. Understandably, those are all expenses (with no income) which eat from your profits which is fine because overall your sales went up. When those are eliminated, your spend will go down and your profits are going to go back up.
     • This is a normal situation for scaling because as we increase our spend to launch a lot more campaigns and they’re working, they will generate us sales.
     • There will be a certain percentage though which won’t generate sales. Understandably, those are all expenses (with no income) which eat from your profits which is fine because overall your sales went up. When those are eliminated, your spend will go down and your profits are going to go back up.

     

     Spend goes down and sales go down

     • If you lowered your spend and your sales go down a little bit, it’s fine because that’s expected.
     • If they go down significantly, it's because you lowered the wrong things like lowering some of the important keywords that shouldn't be lowered.

       • For example:

         You have a keyword that is generating 15% of all of your sales but it's at a 75-80% ACOS. And so, you decide to lower it solely because it has high ACOS which is wrong because you should have lowered all the other ones that weren’t generating sales.

         

         CVR goes down

         • If CVR goes down, something would’ve caused this to happen.

         

         • PPC spend goes up + CVR goes down a little bit = Expected

           • The only time when your conversion rate is expected to go down is when you’re scaling. If you're bringing more people then your sessions will be going up but maybe they're not generating the same proportion of sale, so your conversion rate will go down which is acceptable.

         • PPC spend goes down or stays the same + CVR goes down = Problem

           • Did you get a negative review?
           • Did you increase your price?
           • Are people not liking your main image?
           • Did a one star review get upvoted to the top?

         CPA: is it possible to be profitable?

         

         • We have a $2 cost per session and we have a 24% conversion rate.
           • Unit Session Percentage - you need about four sessions (four times 25 is 100) to make one conversion
           • Cost Per Session - each session costs you $2.
           • This means four sessions costs you about $8.67
           • Sale Price - $19.95
           • Proft - $19.95 - $6.71 [Amazon Fees] - $3.51 [Cost of Goods] - $8.67 [CPA] = $1.06 — so you're left with almost nothing!
         • CPA will go down if:
           • CVR goes up
           • Cost Per Session goes down
         • If CPA is too high, it could be because of two reasons:

           • CVR is too low — bring this up by split testing price, main image, rest of images and then reviews, videos, etc.

           • Cost Per Session is too high — bring this down by increasing your organic rank which will increase your organic sessions for the same PPC spend:

             • Optimize your PPC by adding negatives, lowering bids, eliminating sessions that are worthless
             • Doing search, find, buy which is against terms of service.

             Is profit per unit too low?

             

             • Looking at Proft Per Unit before Ad Spend, for example, if you have $9.73 versus $4.20 - the latter will be a problem because you won’t have enough wiggle room for Spend.
             • How much money do you want me to spend on ads to make a sale?
             • If you don't even have enough money to begin with in the product, PPC won’t be profitable and you’ll lose money.
             • Here are the only options that you can do to be profitable and you can have enough wiggle room for advertising: