Definitions written for operators. Useful whether you are new to Amazon advertising or auditing a vendor.
Ad spend as a percentage of attributed sales. Calculated as (Ad Spend / Ad Revenue) x 100. A 20% ACoS means you spent $20 to generate $100 in ad-attributed sales. The target ACoS depends on your margin and goals.
The method Amazon uses to credit sales to ad clicks. Sponsored Products and Sponsored Brands use a 14-day attribution window: sales within 14 days of a click count toward that ad. Sponsored Display adds a 1-day view-through window.
Amazon Standard Identification Number: the unique 10-character ID assigned to every product in Amazon's catalog. In advertising, specific ASINs can be targeted to place ads on competitor or complementary product detail pages.
A targeting strategy that places ads on specific product detail pages by selecting individual ASINs. Common uses include targeting competitor listings or cross-selling complementary products.
A campaign where Amazon's algorithm chooses which searches and products to show the ad on. Auto campaigns use four targeting groups: Close Match, Loose Match, Substitutes, and Complements. Commonly used for keyword discovery before promoting top performers into manual campaigns.
The maximum amount you will pay when a shopper clicks your ad. Amazon uses a second-price auction, so the actual cost is typically slightly above the second-highest bid, up to your maximum.
Adjusting bids to hit performance goals such as a target ACoS or ROAS. Automated bid optimization (including AdFixer's algorithm) uses historical data, conversion patterns, and competitive signals to set bids continuously.
The ACoS at which advertising neither makes nor loses money. It equals your profit margin percentage. If your margin is 30%, break-even ACoS is 30%. Advertising below break-even is profitable; above it loses money on ad-attributed sales.
A keyword match type that shows your ad for searches containing all words in your keyword, in any order, plus variations, synonyms, and related terms. It has the widest reach and the least control. Useful for discovery, but spend can rise quickly without monitoring.
The maximum daily spend for a campaign. Amazon resets daily budgets at midnight in your marketplace's timezone. Daily spend can exceed the budget by up to 25% on high-traffic days, but Amazon averages spend over the month.
The top level of Amazon PPC structure. Sets the ad type (Sponsored Products, Brands, Display), daily budget, targeting type (auto or manual), and bidding strategy.
A product targeting strategy that shows ads across an entire category or refined segments within it. Refinements include brand, price range, star rating, and Prime eligibility.
The share of impressions that result in clicks. Calculated as (Clicks / Impressions) x 100. Amazon's average CTR ranges from 0.3% to 0.5% by category. A low CTR usually points to a relevance or creative problem.
The share of ad clicks that result in a purchase. Calculated as (Orders / Clicks) x 100. Amazon averages 10 to 15%. Low CVR usually points to a listing issue: images, bullet points, price, or reviews.
The period after an ad click during which a sale counts toward that ad. For Sponsored Products and Sponsored Brands the window is 14 days. A click today followed by a purchase 10 days later is attributed to that click.
The actual amount paid when someone clicks your ad. It is usually lower than your bid because of Amazon's second-price auction. Average CPC is used to forecast spend and benchmark bid competitiveness.
Adjusting ad bids or budgets by hour of day and day of week based on when products convert best. AdFixer automates dayparting using historical conversion data, raising bids during high-converting windows and lowering them at other times.
Amazon's native bid adjustment feature. It has three modes: Down Only (Amazon only lowers bids), Up and Down (raises up to 100% or lowers), and Fixed Bids (no adjustments). Most advertisers start with Down Only.
The most restrictive match type: an ad shows only when a search exactly matches the keyword or very close variations. Highest control and relevance, lowest volume. 'Running shoes' matches 'running shoes' or 'running shoe' but nothing else.
The number of times an ad is displayed to shoppers, regardless of whether it is clicked. Impressions measure reach and visibility. Low impressions usually indicate low bids, restrictive match types, or poor keyword relevance.
A word or phrase that triggers an ad when shoppers search for it. Keywords are the foundation of manual Sponsored Products and Sponsored Brands campaigns. A complete keyword strategy uses all three match types together.
A structured keyword lifecycle: Discovery (auto/broad), Testing (phrase), Optimization (exact), Negation (non-converters). AdFixer automates each funnel transition based on performance thresholds.
Identifying high-performing search terms from auto campaigns or broad match and promoting them to phrase or exact match in manual campaigns for tighter targeting and bid control.
A campaign where you select the keywords or products to target. It offers more control than an auto campaign and allows per-keyword bid optimization and match type selection.
A setting that determines how closely a shopper's search must match your keyword. There are three types: Broad (widest reach), Phrase (moderate), and Exact (most precise). A layered structure using all three is standard practice.
A keyword that blocks an ad from showing when the term appears in a search. It reduces wasted spend on irrelevant traffic. Available as negative exact (blocks the exact term) or negative phrase (blocks any query containing the phrase).
A Sponsored Brands and Sponsored Display metric tracking purchases from customers who have not bought from your brand in the last 12 months. NTB measures customer acquisition rather than repeat purchases from existing buyers.
The number of orders attributed to your ads within the conversion window. Combined with spend, orders are used to calculate ACoS and ROAS.
A product's position in Amazon's unpaid search results. PPC drives sales velocity, which improves BSR, which improves organic rank. The effect of advertising on organic sales is captured in TACoS.
A match type that shows an ad when the search contains the keyword phrase in order, with optional words before or after. 'Running shoes' matches 'best running shoes' and 'running shoes for men' but not 'shoes for running.'
Where an ad appears on Amazon. Sponsored Products placements are Top of Search, Rest of Search, and Product Pages. Placement modifiers can raise bids for specific placements.
Percentage increases added to a base bid for specific placements. A 50% Top of Search modifier on a $1.00 bid means the bid for the top position can reach $1.50. Available for Top of Search and Product Pages.
A grouping of campaigns with shared budget caps and consolidated reporting. Commonly used to manage spend by brand, product line, or strategy.
An advertising model where you pay only when someone clicks your ad. Amazon PPC includes Sponsored Products, Sponsored Brands, and Sponsored Display. Impressions are free; clicks are charged.
A targeting method for Sponsored Products and Sponsored Display that places ads on specific product detail pages. Targets can be individual ASINs or entire categories. Common uses include targeting competitor listings and cross-selling.
Revenue generated per dollar of ad spend. Calculated as (Ad Revenue / Ad Spend). A ROAS of 5x means $5 in sales for every $1 of ad spend. ROAS is the inverse of ACoS: if ACoS = 20%, ROAS = 5x (100% / 20%).
The rate at which a product sells over time. Higher velocity improves BSR and organic ranking. New product launches commonly use PPC to build velocity before organic rank takes hold.
The actual words a shopper types into Amazon's search bar, which may differ from your keyword depending on match type. The Search Term Report shows which queries triggered your ads.
An Amazon report showing the actual search queries that triggered your ads, with performance data. Used for keyword harvesting and negative keyword mining. Available with up to 60 days of history.
The percentage of total ad impressions in a category, or for specific keywords, that your brand captures. Higher SOV means greater visibility in paid search relative to competitors.
An ad type that shows a logo, custom headline, and up to three products at the top of search results. Requires Brand Registry. A video format is also available. Commonly used for brand awareness and Amazon Store traffic.
An ad type that reaches audiences on and off Amazon through product, audience, or views-remarketing targeting. Ads appear on product detail pages, review pages, and external sites. Used for retargeting and audience expansion.
The most common Amazon ad type. It promotes individual listings in search results and on product pages. Available regardless of Brand Registry status. It typically drives the highest direct sales attribution.
Ad spend as a percentage of total revenue, including organic sales. Calculated as (Ad Spend / Total Revenue) x 100. TACoS captures the effect of advertising on organic sales, which ACoS does not.
The ad placement at the top of Amazon search results, above all organic listings. It has the highest visibility and CTR, along with the highest competition and cost. Bids can be increased for this placement using placement modifiers.
Ad spend on clicks that do not convert. It is the primary driver of high ACoS. Common methods to reduce it include negative keywords, bid reductions on poor performers, and tightening match types. AdFixer identifies and reduces wasted spend continuously.
AdFixer automates bid optimization, dayparting, and keyword funnels so your team can focus on growing the business.
