Amazon PPC Glossary

This glossary provides key terms and definitions related to Amazon Pay-Per-Click (PPC) advertising. Whether you’re a seller looking to optimize your campaigns or a marketer aiming to improve your ad performance, this resource will provide a solid foundation for understanding and managing Amazon PPC campaigns effectively.

• ACoS (Advertising Cost of Sales): A metric that shows how much of the ad spend is required to generate a sale. It’s calculated as ad spend divided by sales and expressed as a percentage.
• Ad efficiency: A measure of how well an ad campaign generates desired results (such as sales) relative to the budget spent.
• Ad group: A collection of one or more ads that share common settings, such as bids and targeting, within a single campaign.
• Ad spend: The total amount of money spent on an advertising campaign.
• Amazon PPC (Pay-Per-Click): An advertising model where Amazon sellers pay for each click on their ads.
• ASIN (Amazon Standard Identification Number): A unique identifier assigned to each product on Amazon.
• Automatic targeting: A campaign setting where Amazon’s algorithms automatically select relevant keywords and products based on the ad content.
• Bid: The maximum amount a seller is willing to pay for a click on their ad.
• Bid adjustment: The process of changing the cost-per-click (CPC) bid for a keyword or ad placement.
• Bid automation: The process of using software or tools to automatically adjust bids based on real-time performance data.
• Bid optimization: The process of adjusting the cost-per-click (CPC) bid for keywords based on performance data.
• Brand registry: An Amazon program that allows brand owners greater control over their brand by registering trademarks.
• Broad match: A flexible match type where ads can trigger searches that include any combination of the keyword’s terms.
• Budget allocation: The process of distributing advertising budget across campaigns or products.
• Campaign: A structured advertising initiative within the Amazon Ads console designed to promote products.
• Click-Through Rate (CTR): The percentage of people who click on an ad after seeing it.
• Competitor product targeting: A strategy in which ads are placed on the product detail pages of competing products.
• Conversion probability: The likelihood that a click on an ad will result in a sale.
• Conversion rate: The percentage of clicks that result in a sale.
• Customer search terms: The actual search queries used by customers that led to clicks or sales.
• Exact match: A restrictive match type where ads only appear if the search query exactly matches the keyword.
• Fixed bids: A bidding strategy where the bid remains constant across all placements.
• Impressions: The number of times an ad is shown to users.
• Interest-based targeting: A type of targeting used in Sponsored Display Ads where ads are shown to users based on their browsing behavior.
• Keyword bids: The amount of money a seller is willing to pay for a click on their ad.
• Keyword research: The process of discovering relevant search terms that customers use to find products.
• Keyword targeting: The practice of selecting specific words or phrases to trigger ads in search results.
• Lucky orders: A situation where a keyword receives an order but may not be a reliable indicator of performance.
• Manual targeting: A campaign setting where advertisers manually select specific keywords or product targets for their ads.
• Match types: The settings that define how closely a search term must match a keyword to trigger an ad.
• Negative exact match: A type of negative keyword targeting where ads are excluded from search queries that exactly match the selected keyword.
• Negative keywords: Keywords that are excluded from campaigns to prevent ads from showing for irrelevant or low-converting search terms.
• Negative phrase match: A type of negative keyword targeting that excludes ads from showing for search queries containing a specified keyword phrase.
• Performance metrics: Data points that measure the success of an ad campaign.
• Performance monitoring: Tracking the success of advertising campaigns using metrics such as ACoS, sales, and spending.
• PPC (Pay-Per-Click): A digital advertising model where advertisers pay a fee each time their ad is clicked.
• Product targeting: A method of targeting specific products or categories on Amazon.
• ROAS (Return on Advertising Spend): The ratio of revenue generated to ad spend.
• Search term report: A report generated by Amazon that provides data on the specific search terms customers use to find a product.
• Search terms: The exact words or phrases that customers enter into Amazon’s search bar.
• Sponsored brands: A type of Amazon ad format designed to promote multiple products and build brand awareness.
• Sponsored brands video ads: A video ad format within Sponsored Brands that allows sellers to showcase their products using video content.
• Sponsored display ads: A retargeting ad format on Amazon that helps sellers reach customers who have already viewed their products.
• Sponsored products: A type of Amazon ad format that promotes individual products.
• TACoS (Total Advertising Cost of Sales): A broader metric that compares ad spend to total revenue, providing insight into overall sales growth.
• Top-of-search placement: A prime ad placement at the top of Amazon search results.