Without access to historical performance data, forecasting future outcomes
becomes challenging. Consequently, we refrain from making predictions about
the Advertising Cost of Sales (ACOS) you might encounter if you haven't
previously utilized advertising from Google to Amazon. However, after
conducting a three-month evaluation, we will be in a position to provide a
more definitive answer regarding this matter.
The ACOS varies significantly depending on the product being advertised. Our
experience shows that ACOS can be as minimal as 1%, yet in some instances,
campaigns with ACOS reaching 300% or more have resulted in notable
improvements in rankings and triggered what is often referred to by Amazon
as the "Snowball effect," attributed to the influx of external traffic.
It's important to recognize that ACOS is just one indicator of success. The
actual return on investment (ROI) considers ACOS, Brand Reinvestment Bonus
(BRB), the snowball effect, and improvements in product ranking.
When drawing a comparison between advertising on Google and Amazon based on
ACOS, Amazon advertising typically shows a lower ACOS, making it the
preferred initial advertising channel. However, incorporating Google as part
of an omnichannel brand strategy is crucial for expanding your brand's
presence beyond the confines of Amazon Ads. Solely depending on Amazon Ads
for advertising could significantly hinder your brand's growth and market
value.