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Amazon Advertising Glossary

Essential terms for Amazon PPC success

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ACoS (Advertising Cost of Sale)

The percentage of sales spent on advertising. (Ad Spend ÷ Sales) × 100.

Example: £100 ad spend generating £400 sales results in 25% ACoS.

Related terms: ROAS, TACoS

ROAS (Return on Ad Spend)

Revenue generated per pound of ad spend. Calculated as Sales ÷ Ad Spend.

Example: £400 sales ÷ £100 ad spend = 4x ROAS.

Related terms: ACoS, TACoS

TACoS (Total Advertising Cost of Sale)

The percentage of total sales, including organic, spent on advertising.

Example: (Ad Spend ÷ Total Sales) × 100.

Related terms: ACoS, ROAS

CTR (Click-Through Rate)

The percentage of impressions that result in clicks. Clicks ÷ Impressions × 100.

CVR (Conversion Rate)

The percentage of clicks that convert to orders. Orders ÷ Clicks × 100.

CPC (Cost Per Click)

Average cost per click. Ad Spend ÷ Clicks.

Keyword Bidding

Maximum CPC you are willing to pay for a keyword.

Negative Keywords

Keywords you do not want your ads to show for.

Search Term Report

Shows actual queries that triggered your ads.

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