Ecommerce adoption has led to a shift in online ad measurement, focusing on business outcomes like sales and profitability rather than just ad clicks or impressions. Metrics like ACOS and ROAS are now critical for advertisers to evaluate campaign success.
Amazon's advertising model revolves around metrics like ACOS (advertising cost of sales) and ROAS (return on ad spend). ACOS helps determine the cost efficiency of ad campaigns by comparing ad spend to paid media revenue, while ROAS calculates the revenue generated from ad spend.
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