Advertising, Promotions, and Sales Growth Tools
Domain 10: Advertising, Promotions, and Sales Growth Tools
This domain tests campaign math and eligibility.
Ad mechanics
Sponsored ads are keyword- or product-targeted. Match types are exact, phrase, and broad. ACoS = ad spend / ad sales. TACoS = ad spend / total sales. Budget caps daily spend; placement modifiers change bids by placement. Negative keywords reduce waste.
Promotions
Coupons, deals, and lightning deals require eligibility around rating, price history, and inventory. Promotions can stack and erode margin; check the combined discount.
Worked example
Ad spend $100, ad sales $500, total sales $1,000. ACoS = 20%; TACoS = 10%. If the seller cuts the bid and ad sales fall to $400 but total sales hold at $900, ACoS = 25%, TACoS = 11.1%. The cut did not improve ad efficiency, because spend did not fall proportionally. The seller should inspect spend and conversion, not just sales.
Traps
Using ACoS alone to judge profitability; ignoring organic cannibalization; stacking coupons beyond margin; and running ads on out-of-stock ASINs.