
Zerora Solutions Insights · Advertising
Amazon Sponsored Products can create traffic, but ad-attributed revenue is not the same as business profit. Before scaling, establish a product’s contribution margin after landed cost, referral and fulfillment fees, returns and operational expenses.
Segment intent
Separate branded terms, category terms, product targeting and discovery campaigns where practical. Use search-term reports to identify converting queries, irrelevant traffic and excessive bids. Avoid treating every product and keyword with the same target.
Understand ACoS and TACoS
Advertising cost of sales measures spend relative to ad-attributed revenue. Total advertising cost of sales measures spend relative to overall revenue. Neither number is a complete profitability measure in isolation, especially for products with different margins.
Change one variable at a time
Audit bidding, placements, budgets, listings and stock position. Record hypotheses and compare results over meaningful windows rather than reacting to a single day’s fluctuations. Remember that changes in inventory and featured-offer eligibility also affect conversion.
A practical reporting rhythm
Review search terms weekly, assess spend and margin trends monthly, and connect advertising decisions with pricing and inventory. Zerora Solutions can help build an auditable PPC review process tailored to your assortment.
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