Amazon Advertising

As an Amazon seller, you’ll come across a lot of terms, acronyms, and jargon that are unique to Amazon. From product categorization, to advertising campaigns, to metrics, Amazon’s language encompasses so many varied aspects of its extensive ecosystem. We’ve put together this glossary of key Amazon terms to help you become a savvy seller in much less time. Be sure to bookmark this page for your convenience!

ACoS – Advertising Cost of Sale: The percentage of attributed sales spent on advertising. The formula for this is total spend / ad sales = ACoS.

AMS – Amazon Marketing Services: This is now known as Amazon Advertising.

CPC – Cost Per Click: This relates to sponsored ads and the amount Amazon charges the seller or vendors when a customer clicks on their ad. The calculation is total ad cost / clicks.

CTR – Click Through Rate: A metric that measures the number of clicks per impression of an advertisement. The calculation for this is # of clicks / # impressions = CTR.

Headline Search Ads: Advertisements that are located on top of a search results page. These have been renamed to Sponsored Brands.

Impressions: A measure of views or ad views. Determined by the number of single times a page is located and loaded.

LD – Lightning Deal: A promotion on Amazon offered in a limited quantity for a short period of time. Lightning Deals are available, one per customer, until either the deal’s promotion period expires or all the available inventory is claimed.

PPC – Pay Per Click: A term often used for Amazon Advertising, in which advertisers pay a fee each time an ad is clicked.

ROAS – Return On Ad Spend: Used to determine the effectiveness of an ad campaign. Should tell you how many dollars you will receive for every dollar you spend on advertising.

SB – Sponsored Brands: Keyword-targeted ads that promote a specific brand, and are on a cost-per-click basis.

SEO – Search Engine Optimization: A process to increase traffic and visibility to a website, brand, or product through a search engine on the web. Refers only to “organic,” or unpaid or free results, as opposed to paid placement, such as ads.