Amazon PPC Glossary
Master Amazon advertising terminology. Every metric, term, and concept explained simply.
A
ACoS
MetricsAd spend as a percentage of the sales Amazon credits to your ads. Lower means each ad sale cost less.
Ad Group
Campaign StructureThe container inside a campaign that holds your targeting, the default bid and the ads shown against it.
Ad Spend
MetricsThe money actually charged for ad clicks, which is clicks multiplied by realised CPC, not the bid you set.
Advertised Product Report
ReportsAmazon report showing performance per advertised ASIN or SKU, including how much of the return came from the advertised product.
Amazon DSP
Ad TypesAmazon's programmatic platform for buying display, video, audio and streaming TV ads on and off Amazon, paid per thousand impressions rather than per click.
AOV
EconomicsAverage order value: total sales divided by orders. Not the same as unit price when orders contain several units.
ASIN Targeting
OptimizationBidding on one named product's ASIN so your ad can show on its detail page and in search results where it appears near the top, priced by what clicks earn.
Attribution Window
MetricsThe period after an ad click in which a purchase is still credited to that ad, and to the click date rather than the purchase date.
Auto Targeting Groups
TargetingThe four groups inside an auto campaign: close match, loose match, substitutes and complements, each bid separately.
B
Bid Adjustment
OptimizationAny change applied to a base bid, by the seller, by a placement modifier, or by Amazon's dynamic bidding at auction time.
Bid Optimization
OptimizationSetting each keyword and target bid from what a click earns and what your margin can afford, then moving it in measured steps as evidence arrives.
Break-Even ACoS
EconomicsThe ACoS at which an advertised sale makes neither profit nor loss: contribution margin divided by price.
Broad Match
TargetingThe widest keyword match type: the words may appear in any order, alongside synonyms and related queries.
Budget Rules
OptimizationAmazon campaign rules that raise a daily budget automatically on a schedule or when a performance threshold is met.
C
Campaign Bidding Strategy
OptimizationThe campaign setting that decides whether Amazon may lower, raise or leave alone the bid you set, at auction time.
Category Targeting
TargetingTargeting a browse category, optionally refined by brand, price, rating or Prime, instead of naming ASINs.
COGS
EconomicsThe landed cost of a unit: production plus freight. Amazon never supplies it, so the seller has to enter it.
Contribution Margin
EconomicsThe money a unit leaves behind after Amazon's fees and cost of goods, before advertising is paid for.
CPC
MetricsThe average price you pay each time a shopper clicks your ad. The auction sets the price; your bid only caps it.
CTR
MetricsThe share of your ad's impressions that became clicks: how often shoppers who saw the ad chose it.
CVR
MetricsThe share of ad clicks that end in an attributed order, which sets what each click is worth.
D
Daily Budget
OptimizationThe daily spend ceiling on a campaign, which controls how long a campaign runs rather than how well it performs.
Dayparting
OptimizationSetting bids by hour of day and day of week, so each hour is priced at what its clicks are worth instead of one flat bid running around the clock.
Dynamic Bids Down Only
OptimizationAn Amazon bidding strategy in which Amazon may lower your bid in real time for unlikely conversions, but never raises it.
Dynamic Bids Up and Down
OptimizationAn Amazon bidding strategy in which Amazon may raise or lower your bid in real time based on conversion likelihood.
F
I
Impressions
MetricsThe number of times your ad was displayed, after Amazon removes invalid traffic. Every click, order and sale on an ad starts as an impression.
Inventory Performance Index
StrategyAmazon's score for how efficiently a seller manages FBA inventory, which feeds the storage capacity available in Seller Central.
N
Negative Exact
OptimizationAn exclusion that blocks one specific search term and its close variants, leaving neighbouring terms untouched.
Negative Keywords
OptimizationSearch terms you exclude from a campaign or ad group so your ads stop serving on queries from shoppers who want a different product.
Negative Phrase
OptimizationAn exclusion that blocks every query containing a word sequence, current and future.
Net Margin
EconomicsNet profit as a percentage of the sales price, after Amazon's fees, cost of goods, advertising and returns.
O
P
Phrase Match
TargetingA keyword match type that serves when the query contains your words in order, with extra words allowed before or after.
Placement Modifier
OptimizationA percentage uplift set per campaign that multiplies the base bid in every auction for one placement group.
Placement Report
ReportsAmazon report splitting campaign performance by where the ad appeared: top of search, rest of search, or product pages.
Portfolio
Campaign StructureA grouping layer above campaigns that rolls them into one reporting line and can carry a spending cap of its own.
Product Collection
Ad TypesThe Sponsored Brands format pairing a brand logo and custom headline with several products in one banner.
Product Pages Placement
OptimizationThe Sponsored Products placement group covering ad slots on product detail pages and other non-search pages.
Product Targeting
TargetingTargeting individual ASINs so your ad can appear against those products rather than against a search term.
Profit Retention
EconomicsA setting that scales break-even ACoS into a target, deciding how much margin is kept rather than spent on ads.
Purchased Product Report
ReportsAmazon report pairing the advertised ASIN with the product actually bought after the click, which is how halo sales become visible.
R
Referral Fee
EconomicsAmazon's commission on each sale, charged as a category rate on the total sales price with a per item minimum.
Rest of Search
OptimizationThe Sponsored Products placement group covering search result ad slots that sit outside the top-of-search block.
Review Velocity
StrategyThe rate at which a listing gains new reviews, usually expressed per week or per hundred units sold.
ROAS
MetricsAd-attributed sales divided by ad spend: the sales each dollar of advertising brought back. The inverse of ACoS.
S
Sales Velocity
StrategyThe rate at which a product sells, measured as units sold per day or per week over a defined window.
Search Query Performance
ReportsBrand Analytics report showing every stage of the shopper funnel for a search query, with the market total beside your share.
Search Term Isolation
StrategyStructuring campaigns and negatives so a search term is served from one place, giving clean data and one bid to control it.
Search Term Report
ReportsAmazon report listing the queries shoppers used before clicking your Sponsored Products or Sponsored Brands ads, with the clicks, spend and sales each produced.
Share of Voice
StrategyThe proportion of a search term's visibility or purchases that belongs to you rather than to competitors.
Single Keyword Ad Group
Campaign StructureAn ad group holding one keyword, used when a term is important enough to deserve its own bid and its own reporting line.
Sponsored Brands
Ad TypesAmazon ads that feature your brand logo, a custom headline and several products or a video, shown in search results and on product pages to build your brand.
Sponsored Brands Video
Ad TypesA Sponsored Brands format that plays a short video in search results, muted by default, linking to your product or Store.
Sponsored Display
Ad TypesAmazon's self-service display ads, now part of its display ads offering, targeting shoppers by product, category or audience, on and off Amazon.
Sponsored Products
Ad TypesAmazon's cost-per-click ads for single product listings, shown in search results, on product pages and off Amazon, sending each click to the detail page.
Store Spotlight
Ad TypesA Sponsored Brands format that promotes several pages of your Amazon Store rather than individual products.
T
TACoS
MetricsAd spend as a percentage of all sales, organic and ad-attributed together. Equals ACoS × ad share of sales.
Targeting Report
ReportsAmazon report showing performance for the keywords and product targets you bid on, rather than the queries shoppers typed.
Top of Search
OptimizationThe Sponsored Products placement group covering ad slots above the organic results on the first page of search.
Put these terms to work
Run the numbers in the free PPC calculators, follow the guides on bids and dayparting, see how PPC differs by country in the marketplace guides, or compare PPC tools.
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