Amazon Advertising Terminology


CPC is the cost per click, or how much it costs you each time someone clicks on your ad. The CPC will vary depending on how popular the keyword is.

Calculated by: total cost of clicks / total number of clicks = cost per click

ACoS #

ACoS or Average Cost of Sales compares the amount spent on campaigns to the amount earned, it helps determine how cost-efficient your campaigns are.

Calculated by: ad spend / ad revenue= ACoS (converted to a percentage)

Target ACoS #

The target Average Cost of Sales applied to the ad. The average ACoS on Amazon is around 30%, in publishing it’s safe to assume if your ACoS is below 70% you are making a profit. A high-performing ad would have an ACoS of around 15-20%.


CTR or Click Through Rate is a good determining factor on how relevant ads are. This number shows how many shoppers that have seen your ad actually clicked on it.

Calculate by: clicks / impressions = CTR

While there are divided opinions on whether it is important, Amazon has explicitly talked about ad relevancy and how important it is.

If you have a low CTR it’s likely your ads are targeting the wrong keywords or products.

CR #

CR or Conversion Rate shows how many shoppers clicked on your ad purchased, this is one of the main metrics we use to measure ad performance.

Calculated by: orders / clicks = CR

Clicks #

The number of times someone has clicked on your ads

Sales #

The dollar value of sales that ad has generated (note this is not the profit you have made, it is the retail value of sales)

Spend #

The total amount you have spent on the ad for the given time frame.

Orders #

The number of orders attributed to the ad campaign.

Daily Budget #

This specifies how much you are comfortable spending each day over the course of the month. Daily budget averages out, so you may set a $20 daily budget but some days you may spend $25 and others you may spend $15.

Targeting Types #

Manual #

Lets you choose your own keywords to target and set individual bids for each keyword.

Automatic #

Amazon automatically matches your ads with keywords and products similar to yours. Matches are based on searches related to your product information.

Default Bid #

The maximum cost-per-click (CPC) you are willing to pay when someone clicks on an ad from a given ad group.

Ad Groups #

A group of ads that share the same set of keywords and products, ad groups exist within campaigns to oversee audience/targeting, bids/CPC and delivery options.

Search Term #

The words or phrases that potential customers enter into Amazon’s search engine when they’re looking for a product. The more relevant your search terms are to the products you’re selling, the more likely it is that customers will find your products when they’re searching for them.

Match Type #

There are three types of Amazon Advertising keyword match types: broad, phrase, and exact. Visit our guide on Keyword Match Types to learn more.

Broad #

Broad match means that your ad may show up for misspellings or related searches. Learn more about Broad Match Keywords.

Phrase Match #

Phrase match means that your ad will only show up if the search includes your key phrase, in the order you specify.

Exact Match #

Exact match means that your ad will only show up if the search is an exact match for your key phrase.

Keywords #

Keywords are the words or phrases that you choose to target your ads to Amazon shoppers. These keywords can be related to the products you sell, the topics of your ads, or anything else that you think Amazon shoppers might search for. When you create an ad campaign, you’ll need to choose some keywords to target.

Learn more about selecting keywords in our guide How do I Choose Keywords for my Books on Amazon to Increase Sales and Exposure?

Negative Keywords #

Negative keywords are words that you don’t want to show up in your results. For example, if you’re selling a fiction romance book, you might not want to show up when someone searches for “guide to romance” as they are most likely looking for non-fiction books. Or if someone is including the word “free” in their search you don’t want them on your page as they will not be willing to purchase your book.

Learn more about negative keywords in our guide What is a Negative Keyword and How to Use Them to Your Advantage.

Lead Magnet - Boost Your Book Business eBook

FREE eBook: Boost Your Book Business

How Automated Ads can unlock your profit potential

This will close in 0 seconds