Redefine the way you determine success by establishing clear goals and key performance indicators (KPIs) for different types of campaigns, and track the results independently against those goals.
Most everyone is familiar with ACoS as a metric, this helps you quickly assess how cost-effective your ad campaigns are in generating immediate sales. However, immediate sales and high ROI are not the only indicators of success.
For example, a campaign with a higher ACoS, may be better at generating new customers, than a campaign with a lower ACoS. If your goal is to increase your market share and acquire new customers, focusing only on ACoS, rather than overall sales or TACOS, could cause you to miss the bigger picture.
To truly understand your advertising performance, look at ACoS alongside other metrics that align with the long term growth goals of your business. Set goals based on where you are in the campaign lifecycle and the outcomes you're looking to achieve to identify KPIs. Tracking relevant KPIs will give you a holistic view of how the actions you're taking are impacting your business.
For example, are you launching a new product and need traction? Consider focusing on impressions and clicks metrics. Are you trying to take over more market share? New customers may cost more to acquire and take longer. Consider focusing on spend.
The chart above highlights some common metric trends associate with each phase of the campaign lifecycle. Use this as a reference to help you identify your KPIs and begin tracking long term performance to see how you're trending towards your goals. Learn more about performance metrics here.