{"id":373715,"date":"2024-11-12T08:57:46","date_gmt":"2024-11-12T08:57:46","guid":{"rendered":"https:\/\/webinterpret.com\/blog\/the-advertising-cost-of-sales"},"modified":"2026-06-19T11:58:16","modified_gmt":"2026-06-19T11:58:16","slug":"the-advertising-cost-of-sales","status":"publish","type":"post","link":"https:\/\/webinterpret.com\/en\/blog\/the-advertising-cost-of-sales","title":{"rendered":"The Advertising Cost of Sales: The Key to a Winning Advertising Strategy on eBay"},"content":{"rendered":"<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Digital advertising on popular online marketplaces like eBay or Amazon is progressively getting more expensive.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The <\/span><a href=\"https:\/\/www.statista.com\/outlook\/dmo\/digital-advertising\/worldwide#ad-spending\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>latest statistics<\/u><\/span><\/a><span data-color=\"transparent\"> reveal a sharp increase in digital retail media advertising spending worldwide. In 2022, advertisers had spent $679.7 billion on ads, and in the same year, Amazon alone generated $38 billion in revenue from ad sales.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The growth trend is expected to continue as ad spending in the digital advertising market reached $740.3 billion in 2024, and it should exceed the $965 billion mark in the next five years.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Consequently, the cost of advertising on eBay has increased in the last few years, forcing sellers to spend more to secure clicks on ads.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Utilizing the <\/span><a href=\"https:\/\/webinterpret.com\/en\/blog\/ebay-promoted-listings-ad-rates\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Promoted Listings<\/u><\/span><\/a><span data-color=\"transparent\"> on eBay to reach potential shoppers is also getting pricier, affecting the advertising cost of sales metric and the profit margins sellers can expect to make.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">This article will take you through the latest changes and essential concepts of Promoted Listings Priority and provide the\u00a0information you\u2019ll need to estimate your ACoS. So, let\u2019s get started.<\/span><\/p>\n<h2>Key takeaways<\/h2>\n<ul data-pm-slice=\"3 3 []\">\n<li><span data-color=\"transparent\">Promoted Listings with a\u00a0priority campaign strategy can <\/span><a href=\"https:\/\/www.ebayadvertising.com\/en\/ad-solutions\/ad-types\/promoted-listings-priority\/\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>increase product sales by 50%<\/u><\/span><\/a><span data-color=\"transparent\">.<\/span><\/li>\n<li><span data-color=\"transparent\">The cost of Promoted Listings Priority varies and is determined by the seller.\u00a0Even though there\u2019s no limit, 1% to 20% of the product\u2019s final sale price is the result most sellers should target.<\/span><\/li>\n<li><span data-color=\"transparent\">ACoS metric measures the cost-effectiveness of PPC campaigns and shows sellers how much they\u2019ve earned from an ad as a percentage.\u00a0ACoS only indicates the percentage of the final sale spent on an ad, and it doesn&#8217;t include other applicable fees or the seller&#8217;s earnings. <\/span><\/li>\n<li><span data-color=\"transparent\">The campaign&#8217;s maximum Cost-per-Click limits the daily ad spend to the amount specified by the seller.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">The cumulative cost of clicks on Promoted Listings with a priority campaign strategy cannot exceed the seller\u2019s weekly budget.\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">On November 6, 2024, eBay is moving on from a fixed daily ad budget model to a target daily budget that dynamically adjusts to the number of clicks within a day. Webinterpret\u2019s eBay solution has featured the Target ACoS option since the product&#8217;s launch.<\/span><\/li>\n<\/ul>\n<h2>The overview of the changes to eBay\u2019s Priority Campaign Strategy<\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-362178\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-1.jpg\" alt=\"A laptop with a megaphone\" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-1.jpg 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-1-300x150.jpg 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-1-768x384.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">The advertising tools available to eBay sellers are constantly evolving.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">In 2021, the platform introduced <\/span><a href=\"\/en\/?p=373861\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Promoted Listings Advanced<\/u><\/span><\/a><span data-color=\"transparent\">, its first Cost-per-Click solution, which enabled sellers to set their daily ad budgets.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">A few years later, the Smart Targeting option that automatically updates the Promoted Listings Advanced campaign\u2019s setting was added to the platform\u2019s advertising toolset. The feature allowed sellers to choose their daily budget and entrust the bidding and targeting to eBay.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The platform recently announced that Promoted Listings Advanced and Standard will be renamed to <\/span><a href=\"https:\/\/support.webinterpret.com\/hc\/en-us\/articles\/9546128500754-FAQ-for-Promoted-Listings-with-a-priority-campaign-strategy\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Promoted Listings Priority<\/u><\/span><\/a><span data-color=\"transparent\"> and General.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Sellers can now choose between General, Priority, and Offsite promoted listings campaigns. More importantly, starting\u00a0November 6, 2024, their daily ad budgets will switch from the fixed to the target model.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">eBay sellers who use Webinterpret have had access to the target ACoS model since its introduction during product development.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The transition is automatic, so sellers won\u2019t have to change the settings of their priority strategy campaigns to start using the new option.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The target daily budget provides sellers more flexibility by matching their spending to daily demand. Hence, on days with high ad traffic, sellers can spend up to 50% more than their daily budget or go under the daily ad spend limit on days with low traffic.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The feature allows sellers to spend up to seven times the daily budget on a weekly level and maximize their sales opportunities. It\u2019s worth noting that sellers have complete control over their weekly budgets and can increase or decrease their ad spending at any moment.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Moreover, the weekly ad budget will be limited to seven times the daily budget, so sellers don\u2019t have to worry about spending more on their campaigns than they initially planned.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-362202\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/Global-ebay_mock-up.png\" alt=\"\" width=\"407\" height=\"285\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/Global-ebay_mock-up.png 2500w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/Global-ebay_mock-up-300x210.png 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/Global-ebay_mock-up-1024x717.png 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/Global-ebay_mock-up-768x538.png 768w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/Global-ebay_mock-up-1536x1075.png 1536w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/Global-ebay_mock-up-2048x1434.png 2048w\" sizes=\"(max-width: 407px) 100vw, 407px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/pages.webinterpret.com\/ebook-ebay-growth.html\"><span style=\"font-weight: 400;\">Get our free ebook<\/span><\/a><span style=\"font-weight: 400;\"> to discover the best global growth strategy on eBay for your brand.<\/span><\/p>\n<h2>Managing Promoted Listings Priority Strategy and setting the daily ad spend budgets<\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-362184\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-2.jpg\" alt=\"A man holding a tablet in his hands\" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-2.jpg 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-2-300x150.jpg 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-2-768x384.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Despite the robust changes to the eBay advertising tools available to sellers, the process of creating campaigns with a priority strategy and setting\u00a0daily or weekly budgets remains the same.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Depending on their needs, sellers can choose between Smart and Manual Targeting strategy options.<\/span><\/p>\n<h3>Smart Targeting<\/h3>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">This strategy enables sellers to bid on relevant keywords automatically. To set up a campaign with a Smart Targeting strategy, you just need to<\/span><\/p>\n<ul>\n<li><span data-color=\"transparent\">Select the products you want to promote <\/span><\/li>\n<li><span data-color=\"transparent\">Define the maximum cost-per-click <\/span><\/li>\n<li><span data-color=\"transparent\">Choose the campaign name <\/span><\/li>\n<li><span data-color=\"transparent\">Set a campaign&#8217;s start and end date.\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-color=\"transparent\">Once you launch the campaign, eBay will automatically start dynamically bidding on keywords to secure the top ad placements. Previously, the dynamic bidding option was only available for Manual Targeting strategy campaigns, but it will also become available for Smart Targeting campaigns starting on November 6.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The maximum cost-per-click value depends on various factors, from the product\u2019s category to the seller\u2019s advertising budget.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Generally speaking, setting a higher maximum CPC for a campaign increases the ad\u2019s chances of winning a bid and appearing in a position where potential buyers can easily spot it.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Conversely, ads with low maximum CPC aren\u2019t frequently shown to buyers, so they\u2019re unlikely to attract a high volume of clicks, which in turn can affect the sales numbers.<\/span><\/p>\n<p><span data-color=\"transparent\">Even though Smart Targeting campaigns are more straightforward to run and maintain than Manual Targeting campaigns, they don\u2019t provide the same sales uplift as Manual ones and usually have higher ACoS.<\/span><\/p>\n<h3>Manual Targeting<\/h3>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Opting for a Manual instead of a\u00a0Smart Targeting strategy gives you access to a broader range of ad optimization options you can use to promote your listings.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Aside from having the flexibility to choose between dynamic and fixed bidding strategies, sellers using Manual Targeting can also benefit from the Ad Groups feature. This option, available in the Advertising Dashboard, lets sellers organize listings and keywords into categories or cluster them based on a common goal.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">A campaign can have up to 500 ad groups and contain up to 1000 listings and targeted keywords.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Hence, sellers who want to utilize the Manual Targeting strategy must conduct thorough keyword research to discover queries shoppers on eBay commonly use to search for specific products.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">This strategy also enables sellers to choose between dynamic and fixed bidding options that determine how bids on selected keywords are handled.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The dynamic strategy automatically adjusts the keyword bids to the recommended bid, while the fixed bidding approach remains constant throughout the campaign. Each bidding strategy has advantages, so which one you should choose depends on a wide range of factors.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Most importantly, you should understand how priority ad fees work in order to choose the bidding strategy that best suits your campaign&#8217;s needs and secure great ad placement.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Ad fee is determined by the following parameters:\u00a0<\/span><\/p>\n<ul>\n<li><span data-color=\"transparent\">Seller\u2019s maximum bid value\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">The number of clicks an ad gets\u00a0<\/span><\/li>\n<li><span data-color=\"transparent\">The competitiveness of the queries in which the\u00a0ad appears\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-color=\"transparent\">As noted earlier, the amount eBay charges for priority ad fees can exceed a seller\u2019s daily budget, but it cannot go over the weekly ad spend budget a seller allocated to a campaign.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The amount you\u2019ll pay per click depends on the outcome of the second-price auction, so the higher the level of competition for the keyword you\u2019re bidding on, the higher the amount you\u2019ll be charged for each click your ad receives.<\/span><\/p>\n<h2>The ACoS and the latest marketing trends<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-362190\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-3.jpg\" alt=\"A chart on a digital display\" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-3.jpg 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-3-300x150.jpg 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-3-768x384.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Monitoring campaign performance and adjusting the strategy is vital for its success.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Besides advanced targeting controls, eBay offers extensive report metrics that provide sellers with insight into their campaign\u2019s performance and allow them to tweak their strategies if a campaign isn\u2019t reaching its target.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">So, you can easily keep track of impressions, clicks, CTR, <\/span><a href=\"https:\/\/www.businessofapps.com\/ads\/cpc\/research\/cpc-rates\/\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>CPC<\/u><\/span><\/a><span data-color=\"transparent\">, Ad fees, sold quantity, sales conversion rate, Return on Ad Spend (ROAS), and various other metrics for all Promoted Listing Priority campaigns you launch.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">However, sellers often overlook ACoS, or the average cost of sales metric,\u00a0even though it offers an easy way to determine a campaign\u2019s cost-efficiency.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Although it\u2019s nearly identical to the ROAS metric, ACoS shows sellers the percentage of increase in their ad spending and revenue.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The ACoS is calculated by dividing the ad spend by ad revenue and multiplying the result by 100. On the other hand, you can calculate the ROAS by dividing the ad revenue by ad spend.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Each brand has different ACoS targets that depend on its broader advertising strategy, campaign goals, and other factors.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Broadly speaking, sellers looking to increase their traffic and visibility should aim at a 20% ACoS target, while the recommended ACoS target for brands that want to engage with high-intent shoppers is 30% or higher.\u00a0\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Still, reaching the break-even ACoS should be your top priority when launching a campaign. Once you get to this milestone, you can compare ACoS to your profit margin and adjust the ACoS value to reflect your campaign\u2019s needs.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">The wider ad spending trends suggest that businesses are progressively investing more in the\u00a0promotion of their ads on popular e-commerce platforms like Amazon or the world\u2019s largest search engine.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">In 2024, Google advertisers will spend between <\/span><a href=\"https:\/\/www.webfx.com\/blog\/ppc\/much-cost-advertise-google-adwords\/\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>$0.11 and $0.50<\/u><\/span><\/a><span data-color=\"transparent\"> per click on an ad in the display network. In addition, the average ad spend on Google per 1000 impressions ranges from $0.51 to $1000.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">These numbers show that the average cost of an ad click on Google has slightly increased in the last few years. The <\/span><a href=\"https:\/\/www.adbadger.com\/blog\/amazon-advertising-stats\/\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>average CPC on Amazon<\/u><\/span><\/a><span data-color=\"transparent\"> is also rising. In 2024, advertisers are paying $0.91 per click, almost $0.30 more than just a few years ago.<\/span><\/p>\n<h2>Adjusting ACoS to keep up with competitors on eBay<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-362196\" src=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-4.jpg\" alt=\"A laptop with virtual icons. A man is placing one hand on the laptop and holding a package in the other.\" width=\"1024\" height=\"512\" srcset=\"https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-4.jpg 1024w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-4-300x150.jpg 300w, https:\/\/webinterpret.com\/wp-content\/uploads\/2024\/11\/avertising-4-768x384.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">The ACoS needs to be lower than the profit margin for a campaign to be profitable. However, reaching this goal isn\u2019t always simple, and you may have to tweak your targeting and bidding strategy to find out\u00a0why a campaign is underperforming.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Increasing the ad spend won\u2019t automatically reduce the ACoS percentage, which is why you may have to review the keywords you\u2019re targeting, consider using negative keywords, improve the quality of the listing\u2019s content, or change the bidding strategy.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Adjusting the campaign\u2019s maximum CPC value might also be necessary to remain competitive on eBay. Doing so enables you to win more keyword bids and ultimately boost other metrics like CTR or sales conversion rates.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Moreover, monitoring the campaign\u2019s ROAS and ACoS metrics allows you to estimate its profitability and can help ensure that you earn more than what you\u2019re spending on your advertising campaigns.<\/span><\/p>\n<h2 data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Increasing the eBay advertising budget to maximize sales<\/span><\/h2>\n<p data-pm-slice=\"1 1 []\"><span data-color=\"transparent\">Staying ahead of the competition on\u00a0eBay is becoming more difficult as the number of active sellers on the platform increases.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">As a result, the costs of running successful Promoted Listings Strategy campaigns are growing, making it more challenging for sellers to win daily keyword bidding battles and ensure great placement for their ads.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Keeping track of ROAS and ACoS metrics makes evaluating a campaign\u2019s cost-effectiveness and estimating the profit margin easier.\u00a0<\/span><\/p>\n<p><span data-color=\"transparent\">Still, these aren\u2019t the only metrics that can indicate a campaign\u2019s performance or whether you need to increase your maximum CPC limit. <\/span><\/p>\n<p><span data-color=\"transparent\">Low CTR, Clicks, or Sales Conversion Rates can also suggest that the listing you\u2019re promoting is unattractive to buyers due to the item\u2019s price, content quality, and various other reasons or that the keyword you\u2019ve selected doesn\u2019t fit buyer preferences.<\/span><\/p>\n<p><span data-color=\"transparent\">Webinterpret can help you set up high-converting Promoted Listing Strategy campaigns in case you\u2019re struggling to keep up with the competition on eBay. <\/span><a href=\"https:\/\/webinterpret.com\/en\/solutions\/ebay\" rel=\"noopener noreferrer\"><span data-color=\"transparent\"><u>Contact us<\/u><\/span><\/a><span data-color=\"transparent\"> to find out more about our eBay solution for sellers and how it can boost your sales numbers.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">About Webinterpret<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Webinterpret supports merchants selling on eBay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our AI-based solutions enable more effective selling through automated listing <\/span><a href=\"https:\/\/webinterpret.com\/en\/solutions\/localisation\"><span style=\"font-weight: 400;\">localization<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/webinterpret.com\/en\/features\/advertising\"><span style=\"font-weight: 400;\">advertising<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/webinterpret.com\/en\/features\/returns\"><span style=\"font-weight: 400;\">returns<\/span><\/a><span style=\"font-weight: 400;\"> and ensure all products placed on EU markets are <\/span><a href=\"https:\/\/webinterpret.com\/en\/solutions\/gpsr-compliance\"><span style=\"font-weight: 400;\">GPSR-compliant<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By giving your international customers a full, end-to-end local shopping experience, Webinterpret improves your conversion and helps establish your business globally.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Digital advertising on popular online marketplaces like eBay or Amazon is progressively getting more expensive.\u00a0 The latest statistics reveal a sharp increase in digital retail media advertising spending worldwide. In 2022, advertisers had spent $679.7 billion on ads, and in the same year, Amazon alone generated $38 billion in revenue from ad sales.\u00a0 The growth trend is expected to continue as ad spending in the digital advertising market reached $740.3 billion in 2024, and it should exceed the $965 billion mark in the next five years.\u00a0 Consequently, the cost of advertising on eBay has increased in the last few years, forcing sellers to spend more to secure clicks on ads.\u00a0 Utilizing the Promoted Listings on eBay to reach potential shoppers is also getting pricier, affecting the advertising cost of sales metric and the profit margins sellers can expect to make.\u00a0 This article will take you through the latest changes and essential concepts of Promoted Listings Priority and provide the\u00a0information you\u2019ll need to estimate your ACoS. So, let\u2019s get started. Key takeaways Promoted Listings with a\u00a0priority campaign strategy can increase product sales by 50%. The cost of Promoted Listings Priority varies and is determined by the seller.\u00a0Even though there\u2019s no limit, 1% to 20% of the product\u2019s final sale price is the result most sellers should target. ACoS metric measures the cost-effectiveness of PPC campaigns and shows sellers how much they\u2019ve earned from an ad as a percentage.\u00a0ACoS only indicates the percentage of the final sale spent on an ad, and it doesn&#8217;t include other applicable fees or the seller&#8217;s earnings. The campaign&#8217;s maximum Cost-per-Click limits the daily ad spend to the amount specified by the seller.\u00a0 The cumulative cost of clicks on Promoted Listings with a priority campaign strategy cannot exceed the seller\u2019s weekly budget.\u00a0 On November 6, 2024, eBay is moving on from a fixed daily ad budget model to a target daily budget that dynamically adjusts to the number of clicks within a day. Webinterpret\u2019s eBay solution has featured the Target ACoS option since the product&#8217;s launch. The overview of the changes to eBay\u2019s Priority Campaign Strategy The advertising tools available to eBay sellers are constantly evolving.\u00a0 In 2021, the platform introduced Promoted Listings Advanced, its first Cost-per-Click solution, which enabled sellers to set their daily ad budgets.\u00a0 A few years later, the Smart Targeting option that automatically updates the Promoted Listings Advanced campaign\u2019s setting was added to the platform\u2019s advertising toolset. The feature allowed sellers to choose their daily budget and entrust the bidding and targeting to eBay.\u00a0 The platform recently announced that Promoted Listings Advanced and Standard will be renamed to Promoted Listings Priority and General.\u00a0 Sellers can now choose between General, Priority, and Offsite promoted listings campaigns. More importantly, starting\u00a0November 6, 2024, their daily ad budgets will switch from the fixed to the target model.\u00a0 eBay sellers who use Webinterpret have had access to the target ACoS model since its introduction during product development.\u00a0 The transition is automatic, so sellers won\u2019t have to change the settings of their priority strategy campaigns to start using the new option.\u00a0 The target daily budget provides sellers more flexibility by matching their spending to daily demand. Hence, on days with high ad traffic, sellers can spend up to 50% more than their daily budget or go under the daily ad spend limit on days with low traffic.\u00a0 The feature allows sellers to spend up to seven times the daily budget on a weekly level and maximize their sales opportunities. It\u2019s worth noting that sellers have complete control over their weekly budgets and can increase or decrease their ad spending at any moment.\u00a0 Moreover, the weekly ad budget will be limited to seven times the daily budget, so sellers don\u2019t have to worry about spending more on their campaigns than they initially planned. Get our free ebook to discover the best global growth strategy on eBay for your brand. Managing Promoted Listings Priority Strategy and setting the daily ad spend budgets Despite the robust changes to the eBay advertising tools available to sellers, the process of creating campaigns with a priority strategy and setting\u00a0daily or weekly budgets remains the same.\u00a0 Depending on their needs, sellers can choose between Smart and Manual Targeting strategy options. Smart Targeting This strategy enables sellers to bid on relevant keywords automatically. To set up a campaign with a Smart Targeting strategy, you just need to Select the products you want to promote Define the maximum cost-per-click Choose the campaign name Set a campaign&#8217;s start and end date.\u00a0 Once you launch the campaign, eBay will automatically start dynamically bidding on keywords to secure the top ad placements. Previously, the dynamic bidding option was only available for Manual Targeting strategy campaigns, but it will also become available for Smart Targeting campaigns starting on November 6.\u00a0 The maximum cost-per-click value depends on various factors, from the product\u2019s category to the seller\u2019s advertising budget.\u00a0 Generally speaking, setting a higher maximum CPC for a campaign increases the ad\u2019s chances of winning a bid and appearing in a position where potential buyers can easily spot it.\u00a0 Conversely, ads with low maximum CPC aren\u2019t frequently shown to buyers, so they\u2019re unlikely to attract a high volume of clicks, which in turn can affect the sales numbers. Even though Smart Targeting campaigns are more straightforward to run and maintain than Manual Targeting campaigns, they don\u2019t provide the same sales uplift as Manual ones and usually have higher ACoS. Manual Targeting Opting for a Manual instead of a\u00a0Smart Targeting strategy gives you access to a broader range of ad optimization options you can use to promote your listings.\u00a0 Aside from having the flexibility to choose between dynamic and fixed bidding strategies, sellers using Manual Targeting can also benefit from the Ad Groups feature. This option, available in the Advertising Dashboard, lets sellers organize listings and keywords into categories or cluster them based on a common goal.\u00a0 A campaign can have up to 500 ad groups and contain up to 1000 listings and targeted<\/p>\n","protected":false},"author":65,"featured_media":373716,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[9685,9675,9677],"tags":[],"class_list":["post-373715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","category-ebay","category-marketplace-guides"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The ACoS as a key to a winning advertising strategy on eBay<\/title>\n<meta name=\"description\" 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