Glossary
Amazon PPC glossary
Definitions, formulas and worked examples for the numbers behind your Amazon advertising decisions.
- ACoS
- Advertising cost of sales (ACoS) is ad spend divided by the sales attributed to those ads, expressed as a percentage.
- Blended ACoS
- Blended ACoS is total ad spend divided by total ad-attributed sales across the products or campaigns being combined.
- Break-even ACoS
- Break-even ACoS is the ad-spend percentage that uses up a product’s contribution before advertising under the costs you include.
- Conversion rate
- For the PPC calculations here, conversion rate is attributed orders divided by ad clicks, expressed as a percentage.
- Dynamic bids
- Dynamic bidding lets Amazon adjust Sponsored Products bids in real time based on its estimate of how likely an ad click is to convert.
- Max CPC
- Max CPC is the highest average click cost your product can support at a chosen ACoS target and an assumed conversion rate.
- Negative keywords
- Negative keywords prevent ads from appearing for matching shopping queries within the campaign or ad-group scope where they are applied.
- Placement bid adjustments
- Placement bid adjustments increase a Sponsored Products base bid by a chosen percentage when the ad is eligible for that placement.
- ROAS
- Return on ad spend (ROAS) is ad-attributed sales divided by ad spend, usually expressed as a multiplier.
- Search-term harvesting
- Search-term harvesting means using search-term results to select a query for a separate keyword target or a product for a product target.
- TACoS
- Total advertising cost of sales (TACoS) is ad spend divided by total retail sales for the same business scope and period.
- Target ACoS
- Target ACoS is the advertising-cost percentage you choose to aim for after allowing for the contribution you want to retain.