Amazon PPC terminology
ASIN – an ASIN (Abbreviation for Amazon Standard Identification Number) is a ten-character mix of letters and digits id number that is used by Amazon users to identify each product offered on the Amazon marketplace.
Margin before ads – it is the percentage of profit generated from revenue after you have accounted for all of your expenses and costs excluding ads. Read more
Strategy – Acosbot has three fully automated strategies. Max profit – get low ACoS and high profit, Boost – increase views and sales to build product positions and target ACoS – achieve a specific ACoS.
Conversion rate – the conversion rate is the number of generated orders divided by the number of clicks, expressed as a percentage.
Keyword targeting – Your campaign will appear in the search results for these keywords.
Negative keyword targeting – exclude unwanted customer keywords from your ad campaign. If you add the word to Negative Keyword targeting, you will exclude all possible searches with this word.
CPC – Cost Per Click refers to the actual price you have to pay for each click on your ad.
ACoS – Advertising Cost of Sale is the most important metric that helps you to determine how successful your Amazon PPC campaigns are. It indicates the ratio of ad spend to ad revenue, and is expressed in %. The formula used to calculate it is:
ACoS = ad spend ÷ ad revenue x 100
PPC campaign generated a revenue of €500, while your total cost per click was €45. Using the above formula, you can calculate your ACoS is 45 ÷ 500 x 100 = 9%, meaning that to earn one euro, you spent nine cents.
ACoS helps you to understand whether your campaigns are profitable and whether you are spending the right amount of money on your Amazon PPC advertising campaigns. You should pay close attention to it and analyze it in order to improve your sales results.
TACoS – this is a similar metric to the ACoS, which determines the relation of advertising costs to sales. In this case, not only the sales generated by advertising are taken into account, but the total sales of the product, including organic sales.
If the total turnover (organic + with advertising) of a product is 1,000 € and the advertising costs for this product are 100 €, the TACoS is 10 %.
Impressions – the number of times your sponsored product was displayed, for a search phrase that matched the keywords you are running ads for. You only pay for ads only when a customer clicks on your ad not for the number of impressions or for running the ads.
Clicks – the number of times customers clicked on your sponsored product to view the complete product detail page.
Cost – total cost of generated clicks.
Sales – the total value of the product sold to customers for this exact keyword.
Orders – the number of orders generated by the keyword.
Profit – the revenue that you receive from the number of sales divided by the margin and minus cost of your ad.
Profit per day – this is the profit divided by the number of days in the given time period.
Search terms – search terms are the words that the customer types into the Amazon search field and for which the products appear.
Daily budget – this is the amount you want your campaign to spend per day.
Portfolio – with portfolios, you can arrange campaigns in a way by brand, product category, or season.