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When it comes to running ads on your books on Amazon, some metrics matter more than others.
And the statistic that matters the most above anything else is not ACoS or sales or orders, it’s profit.
I know authors who are upset with how their ads are going. Perhaps they’re not getting enough clicks, or their ACoS is too high.
But then I ask them two key questions: “How much did you spend on your ads?” and “How many sales are showing up on KDP?”
If the amount on KDP is more than the amount that they spent on ads, that means it’s a profit.
Profit is when your royalties are greater than your ad spend.
Honestly, if you are in KDP Select, with Kindle Unlimited, Amazon has made it a little bit difficult to figure out your royalties.
So I do recommend looking at the free KDP beta reports dashboard, which is free, or perhaps you use a paid tool like “Reader Links” or “Book Report,” to get an accurate assessment of how much you’ve made on your royalties.
But honestly, when you’re starting out with ads, profit is the number one thing.
ACoS, which is a percentage representation of how much your ad spend costs against the gross sales you made, is well reported to be wildly inaccurate.
So if you are running ads and you want to be successful, focus on profit first, because that will be the best indication of your success.