The Ad Sales to Total Sales ratio helps you understand the performance of your ads and your organic sales, it shows you how much of your total revenue comes from your advertising sales, and how much from your organic sales.
This metric helps you understand if you’re utilizing your ads well. For example, if your Ad Sales to Total Sales ratio is 10%, then you should invest more in your PPC ads.
The optimal ratio is around 30%, even though some companies like to shoot up their ratio to 40/50%, or even higher. It’s recommended to look at your Ad Sales to Total Sales every month, or even every week if you want to keep constant control of it.
This hidden ratio shows how much of the spend, sales, or ACoS come from each targeting type. This will help you to keep balance in your targeting types and gives you a perspective on how to use them properly. With this ratio, you can compare your looser targeting types (broad, phrase, category, and auto) with your tighter targeting (exact, ASIN targeting). But you can also control your bidding strategies.
So, this hidden ratio lets you understand how much you spend on your targeting types compared to the return you receive. From here, you can determine if you’re underutilizing or overutilizing any targeting options or dynamic bidding strategies.
You need to download either a standard keyword report or a bulk file and run a pivot table where you can look at the metrics side by side, this makes it easier to analyze them.
This ratio shows how much of your sales, spend, and ACoS come from Sponsored Products, Sponsored Brands, and Sponsored Display. It shows you if you’re utilizing all the advertising opportunities available and how well.
You don’t need the percentages of each ad type to be exactly equal. Usually, Sponsored Products will generate the highest percentages, followed by Sponsored Brand, and then Sponsored Display.
A way to understand these ratios is to run a pivot table and sort it by Ad Type, allowing you to make a comparison.
The Revenue per click ratio shows how much revenue you get per click. This will help you to better determine your limits for your CPC and get the ACoS you desire. The only thing you need to do is to divide your campaign revenue by the number of clicks.
This ratio shows what percentage of your ad spend goes to keywords or targets with zero orders, one order, two orders, and so on. In fact, this hidden ratio will help you to allocate your budget in a better way.
You can analyze this metric both at a keyword level and a search term level. And, to obtain these metrics, you should run a pivot table and sort it by number of orders so that you’ll be able to make comparisons.
The ACoS power ratio shows how much your account or campaign is “tight” or “loose” with its targeting. This ratio can be calculated by dividing the ACoS of the entire account or campaign by the ACoS of all clicks.
The ideal range should be between 1.5 and 2.5. If it’s higher than that you probably won’t have enough money left for the winning keywords. While, if it’s lower it means that you’re not doing enough testing.