Amazon Advertising Key Terms and Concepts
In this extensive glossary we’ve collected a comprehensive list of the most important concepts and terms related with Amazon advertising. If you’re new to the platform or are looking to increase your understanding of the platform, this guide can serve as your primary source.
AAP: It is an acronym for Amazon Advertising Platform. It serves as Amazon’s advertising solution enabling businesses and advertisers to showcase their products and services, within the Amazon ecosystem.
Advertising creative: The advertising imagery, video, and text that communicates the message to the audiences.
Advertising format: The type of advertisement used. Examples of common formats include video and display.
Advertising objective: The goal to be achieved from digital advertising. Examples include brand awareness, consideration, purchase, and loyalty.
Advertising placement: The place where an advertisement appears. Examples include in shopping queries on the Amazon site, on Amazon devices (such as Fire TV or Fire tablet), and on third-party sites.
Audio ads: Audio ads play during audio content, such as streaming music or digital radio and podcasts.
Ad Impressions : Ad impressions are a way to gauge the reach and visibility of an advertisement, in advertising. It represents the number of times an ad is shown on a web page or app regardless of whether it’s clicked or not. This metric helps measure how many people have been exposed to the ad.
Ad Orders: Number of Customer Orders; This refers to the count of orders placed by customers who clicked on a sponsored ad and subsequently purchased either the product or related products within a specified attribution window. In this case the attribution window is set at 14 days.
Ad Sales: Revenue, from ad sales, which involves selling advertising space or airtime to businesses and advertisers is a source of income, for media companies, advertising agencies, online platforms and publishers. These entities provide opportunities for businesses to showcase their advertisements to target audiences.
Ad Inventory : Media companies, publishers and digital platforms offer spaces or opportunities to display advertisements. These can include printed publications, websites, mobile applications, television and radio airtime, billboards and other mediums. Collectively this available space is referred to as ad inventory.
Advertisers: Advertisers are entities, whether they be businesses, brands or individuals who seek to promote their products, services or messages. They acquire ad inventory in order to effectively reach and engage with their intended target audience.
Advertising Campaign – An advertising campaign is a specifically designed strategy that is carried out across different mediums in order to achieve desired results such as increased brand awareness, increased sales, and improved communication within a specific market.
Ad Spend: The total click charges for an Amazon-sponsored campaigns ( in the selected time period)
Ad Status: The current status of the ad group. The status may be running, paused, ended, archived, scheduled, incomplete, out of a budget, or payment failure.
Advertising Cost Of Sale ( ACOS) : Amazon ACOS, also known as Advertising Cost of Sale is a metric that evaluates the efficiency of advertising campaigns on Amazon from an outsiders point of view. This perspective allows us to assess how effectively a product’s advertising expenditure translates into revenue from sales. It’s like having someone impartially evaluate the cost effectiveness of the advertising strategy determining if the investment in advertisements is generating sales to justify the expense. Sellers on Amazon find this crucial as it provides insights into the effectiveness of their advertising efforts, on the platform.
In other words, the formula to calculate ACOS is (AD SPEND/AD REVENUE) X 100%
Advertising Console (formerly AMS [Amazon Marketing Services]): This is Amazon’s Pay-Per-Click (PPC) advertising platform for Vendors, allowing the creation of Sponsored Products, Sponsored Brands, and Sponsored Display. Additionally, this platform is where Amazon Vendors can create Brand Stores.
Amazon Advertising (formerly AMG [Amazon Media Group]): Amazon Advertising is the parent company of Amazon’s advertising units.
Amazon Attribution: A tool that provides data on how different marketing channels and touchpoints contribute to deals and transformations on Amazon.
Amazon Associates : The Amazon Associates Program allows website possessors and bloggers to earn commissions by promoting Amazon products and earning a chance of deals generated through their chapter links.
Amazon DSP( Demand- Side Platform) : A programmatic advertising platform that enables advertisers to reach cult across Amazon parcels, third- party websites and apps.
Amazon Live : A live- streaming point on Amazon that allows brands and influencers to show products and engage with guests in real- time.
Amazon Marketing Services( AMS): The former name for Amazon’s advertising platform, which has ago been intermingled into the Amazon Advertising brand. Amazon Pay- Per- Click( PPC): A type of advertising on Amazon where advertisers pay only when druggies click on their advertisements, generally used for Sponsored Products and Sponsored Brands.
Amazon Prime: Amazon’s ultra expensive class program that offers benefits like free shipping, streaming, and exclusive deals to subscribers.
Amazon Sponsored Brands: announcements that promote a brand and a collection of products, frequently displayed prominently in hunt results on Amazon.
Amazon Sponsored Products: Advertisements for individual products that appear in hunt results and on product detail runners.
Amazon Store : A customizable brand runner on Amazon where merchandisers and brands can showcase their products and produce an ingrained shopping experience. Average Cost per Click: The average amount charged for the Amazon product ad. Average cost-per-click (Avg. CPC) is calculated by dividing the total cost of clicks by the total number of clicks.
Average CPC is based on actual keyword bid / maximum cost per click. The average CPC might be different from the maximum cost-per-click (max. CPC), which is the highest amount that one is willing to pay for a click.
Amazon A9: A9 is Amazon’s personal hunt algorithm. Understanding how A9 works is pivotal for optimizing product rosters and patronized advertisements to rank well in Amazon hunt results.
Bid: A bid is the maximum amount of money an advertiser is willing to pay for a click or impression of their ad. It plays a crucial role in ad auction systems like Amazon’s.
Bid+: For manually targeted Amazon advertising campaigns, the Bid+ button allows to raise bids in a campaign up to 50% more than the default bid when ads are eligible to show at the top of search results.
Brand Analytics : Amazon Brand Analytics is a set of tools and perceptivity available to brand- registered merchandisers. It provides data on customer behavior, market trends, and competitor information.
Bidding Strategy : This refers to the approach advertisers use to set their bids. Amazon offers various bidding strategies, including manual bidding, dynamic bidding, and bid adjustments.
Bulk Operations: This feature allows advertisers to make changes to their Amazon Advertising campaigns in bulk, saving time when managing multiple campaigns or keywords.
Browse Nodes: Amazon uses a hierarchy of nodes to organize its items for sale. Each node represents a collection of items for sale, such as Harry Potter books, and not the items themselves. Product Advertising API calls the nodes, browse nodes, because customers can browse through the nodes to find the collection of items that interests them. For example, customers might be interested in the browse nodes Literature & Fiction, Medicine, Mystery & Thrillers, Non Fiction, or Outdoors & Nature.
Brand Analytics: Brand Analytics is a tool available to brand owners on Amazon. It provides insights into customer search and purchase behavior, helping brands make data-driven decisions.
Custom advertising solutions: Custom advertising campaigns use formats outside of existing ad products. Amazon Ads provides solutions such as home page takeovers, Fire TV placements, customized destination pages, and even non-digital formats such as on-box advertising and in-store displays.
Click-Through-Rate (CTR): The percent of users who see the ad and click on it. This is calculated by dividing total clicks by total impressions.
Cost-Per-Click (CPC): An advertising metric that refers to the actual price paid each time a customer clicks on an ad. This is calculated by dividing total ad spend by total clicks.
Conquesting: Bidding on someone else’s branding (brand name, product name, etc.) and appearing ahead of the actual brand.
Conversion Rate: Conversion rate is the percentage of clicks on an ad that result in a desired action, such as a purchase. It measures how well an ad converts clicks into actual sales or other desired outcomes.
Customer match: It is a strategic approach that allows businesses to target their existing customers with personalized ads, resulting in higher engagement and increased sales.
Campaign : An Amazon campaign is an ad placement on amazon.com intended to help to reach more customers, increase sales, and grow brand audience. Sponsored Products, Sponsored Brands, and Product Display Ads each have their own targeting criteria and required campaign structures.
Click Share: Percentage determined by the number of times Amazon customers (in aggregate) clicked on a particular product after searching for a given term, divided by the total number of times Amazon customers (in aggregate) clicked on any product after searching for that term.
Cross-Device Reporting: Cross-device reporting provides insights into how customers interact with ads on different devices (e.g., desktop, mobile, tablet) during their shopping journey.
Cannibalization: It is a phenomenon where multiple campaigns or ad groups are competing for the same keyword, causing them to cannibalize each other’s performance.
DEA: Dynamic eCommerce Ads. A component of Amazon DSP, these ads will have eCommerce features built within the display ad, such as retail price and review ratings.
Daily Budget: The amount one is willing to spend on a campaign in a day.
Display ads: Display ads appear on websites and combine copy and visual elements with a call to action (CTA) message that links to a landing page.
Dynamic Bidding: Dynamic Bidding is an automated bidding strategy in Amazon Advertising that adjusts the bid amounts in real-time based on the likelihood of a click resulting in a sale. It includes options like “Down Only” and “Up and Down” bidding.
- Amazon Dynamic Bids — Down Only: If a click is less likely to convert, the bid is reduced by up to 100%. Only search queries that are very unlikely to convert will lower a bid to 0.
- Amazon Dynamic Bids — Up and Down: If a click is likely to convert, Amazon will raise the bid up to 100% for placements at the top of the 1st page of search results and up to 50% for all other placements. The downward adjustments applied to low-converting clicks are the same as for “Down Only.”
- Fixed Amazon Bids: Dynamic bidding is deactivated and bids remain the same. Amazon always uses the default bid.
Dayparting: Dayparting is the practice of scheduling ad campaigns to run at specific times of the day or days of the week to target audiences when they are most likely to engage or convert.
Delivery Method: This refers to the pacing at which an advertising budget is spent throughout a campaign. Options may include “Standard” (evenly over the campaign duration) or “Accelerated” (spending the budget as quickly as possible).
Dynamic Ads: Dynamic Ads on Amazon allow advertisers to automatically personalize ad content, such as product recommendations, based on a shopper’s behavior and browsing history.
Dynamic Creative Optimization (DCO): DCO is a strategy that dynamically adjusts ad creatives, messaging, and offers to individual users based on their preferences and behavior.
EBC: Enhanced Brand Content. A detail page where the product description has enhanced content and branding, which includes graphics and images embedded into the page. EBC content used to be specifically for sellers. As of 2020, EBC is obsolete and has been replaced by A+ Content.
Experiments: Experiments in Amazon Advertising allow advertisers to conduct A/B tests on their campaigns, ad groups, or keywords to determine which strategies are more effective in achieving their goals.
External Traffic: External traffic refers to the traffic that comes to an Amazon product listing from sources outside of Amazon, such as social media, email marketing, or external websites. Amazon allows advertisers to track and measure external traffic to their listings.
External Storefront: An external storefront is a custom Amazon web page created by a brand or seller that showcases their products. It can be shared outside of Amazon and serves as a branded shopping destination.
Flash sale: A business strategy where a retailer offers substantial discounts or promotions for a very short time period.
Flywheel Effect: The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages customer experience to drive traffic to the platform and third-party sellers. That improves the selection of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.
Frequency: frequency can be defined as the number of times a person is exposed to an advertisement or the number of times an advertisement is repeated through a specific medium over a specific time period.
Frequently Purchased Together (FBT): FBT is a feature that recommends products in Amazon’s pages for products which recommends products that are frequently purchased alongside the item being watched. Advertisers can tailor their ads to appear along with these recommendations for products.
Geotargeting : geotargeting is the technique of targeting ads to specific geographical areas including states, regions, countries or cities. Advertisers on Amazon are able to use geotargeting in order to reach regional and local audiences.
Google Product Listing Ads (PLAs): Google Product Listing Ads are ad formats that display images of product description, prices, and descriptions within Google results. Amazon advertisers can make use of PLAs to promote their goods through Google.
Headline Search Advertisements (HSAs): Headline Search Ads, also called Sponsored Brands are a kind of Amazon advertisement format which permits advertisers to promote their brands and products prominently in results of searches. These ads are typically displayed on the top of the search results pages.
High BSR (Best Sellers rank): BSR is an Amazon ranking system Amazon which measures the popularity of a product in its specific category. A high BSR signifies that the product is in high demand within its field.
Hybrid Campaign: Hybrid campaigns are an advertising campaign that blends different formats or types of ads like Sponsored Items, Sponsored Brands, and Sponsored Display to accomplish specific goals in advertising.
Hijacking: It refers to the unprofessional practice of third-party sellers selling their products on an Amazon page detailing the product made by a different seller. It could lead to an increase in competition with respect to Buy Box and product listing control. Buy Box and product listing control.
Impressions: Impressions refer to the amount of times an advertisement is displayed or presented to users regardless of whether it was clicked or not. It is a measure of the exposure of an advertisement to its target audience.
Inventory: The term “inventory” refers to ad spaces that are available, and product pages on Amazon’s website, where ads are displayed. Advertisers are able to bid for their advertisements in this inventory.
Incrementality: It is the measurement of the added value or the revenue that is that advertising generates. It determines whether advertising campaigns result in an rise in the sales.
Intent-Based Targeting: Intent-based targeting is the process of providing ads to users in accordance with their intention or behavior like their browsing history or search queries on Amazon.
Landing Page: It is the page on the internet that visitors are directed to after they click an Amazon advertisement. It must have relevance to advertisement’s content and should encourage users to perform a desired action like buying something.
Listing Quality Score (LQS): LQS is a measure that evaluates the level of quality of a listings on Amazon. It considers things like the title of the product description, pictures, and images. Higher LQS may result in better visibility in results of a search.
Long-Tail Keywords Keywords: with a long tail are particular and specific search terms customers use when searching for products that are niche or specific on Amazon. They usually have smaller search volumes, however they may be extremely relevant to specific items.
Lowest Advertised Cost (LAP): The LAP is the price at which a particular product is currently advertised by other sellers on a detail page. Advertisers can make use of this information to determine prices that are competitive for their advertisements.
Maximum CPC (Cost-Per-Click): Maximum CPC is the most expensive amount an advertiser is willing to pay for a click to their ad during a pay-per click advertisement on Amazon.
Match Types The match types define the extent to which a query must be matched to an advertiser’s key words to allow the advert to be activated. On Amazon there are a variety of match types that comprise Broad Match, Phrase Match as well as Exact Match.
Minimum Budget A minimum budget is the annual or life-time budget an advertiser creates for their advertisement marketing campaign Amazon.
Marketplace Advertising (MPA): Marketplace Advertising refers to strategies for advertising and campaigns that are targeted at multiple Amazon marketplaces in order to increase the reach of sellers.
Native Adverts: Native advertising on Amazon is when ads are integrated into the natural content on the platform and provide an uncluttered user experience. Examples are Amazon’s Sponsored brands and Sponsored Products.
Negative Keywords: keywords that are negative can be phrases that advertisers can define to stop their advertisements from appearing when they are included in the search query of a buyer. This can help advertisers stay clear of irrelevant clicks.
New-to-Brand Metrics: New-to-Brand metrics can be found to Amazon advertisers. They calculate the proportion of orders attributed to ads that originate from new customers of a particular brand during a specified timeframe.
Non-Brand Advertising: Non-brand advertising refers to advertising campaigns that target generic or non-branded keywords, rather than specific brand names. It can help advertisers capture a broader audience.
Optimization: The term “optimization” in Amazon advertising is the process of continually tweaking ads to enhance their effectiveness. This can include changing the bids, keywords, creatives and setting the targeting.
Organic Ranking: Organic rank refers to the organic, unpaid position of a product’s page in the search results of Amazon. It is crucial to improve organic rank to increase visibility and sales.
One-Click Upsell: It is a function that lets sellers offer additional products to customers via just one click after having completed a purchase. It could help boost the average value of orders.
Product Detail Page (PDP): The Product Detail Page (PDP) appears on Amazon where only one product is listed together with the description, pictures prices, as well as customer reviews. This is where buyers can make an order.
Pay-Per-Click (PPC): Pay-Per-Click is an advertising method in which advertisers pay a commission each when a user clicks their advertisement. Amazon makes use of PPC to advertise various ad types such as Sponsored Products as well as Sponsored Brands.
Product Display ads: Product Display Ads are a kind of Amazon advertising that permits advertisers to advertise their products on Amazon product pages as well as other relevant places.
Prime Exclusive Discounts: Prime Exclusive Discounts provide exclusive offers only available for Amazon Prime members, and advertisers can make use of these discounts to advertise their services to this affluent audience.
Performance Metrics: The performance metrics can be described as crucial indicators that are used to gauge the effectiveness of advertisements on Amazon. These can be measured in terms of click-through rates (CTR) as well as conversion rate and return on advertising spend (ROAS) as well as other metrics.
Position Report:The report on placement offers insight into where advertisements was displayed on Amazon’s platform, and how it performed in different locations, like the top of search results products, top of search, or the rest of the search.
Product targeting: Targeting on products allows marketers to tailor their advertisements to certain products, categories of product as well ASINs (Amazon Standard Identification Numbers) to reach a specific target audience.
promotions: Amazon provides a variety of promotional options for sellers, including Lightning Deals Coupons, Lightning Deals and the Early Reviewer Program to draw more customers and boost sales.
Return on Ad’s Spend (ROAS): ROAS is a measure of how effective advertising efforts are through measuring the amount of revenue that is generated by advertising in relation to the expenses. It’s usually expressed as the ratio of 2:1 (for each $1 spent on advertising there is a revenue of $2 generated).
ROAS = (Ad Attributed Sales/ Ad Revenue) x 100%
Remarketing: Remarketing is also called retargeting, is a technique that involves showing ads to those who previously had interactions with the brand’s product or web site. Amazon provides retargeting options to advertisers.
Ranking algorithm: Amazon utilizes a rank algorithm in determining the order that items are displayed in results of searches. Understanding this algorithm will aid advertisers in optimizing their product listings as well as ads to be more prominent.
Relevance: Relevance can be a important aspect in the Amazon advertising ecosystem. Product listings, ads, and keywords must be relevant to one another and to search queries of customers for better efficiency.
Refund rate: It refers to the percentage of purchases for a product which result in refunds to customers. Advertisers keep track of this metric in order to evaluate whether they are satisfied with the performance and value with their products.
Review Request Buttons: Amazon provides a “Review Request” button that lets sellers request reviews from those who have bought their product, assisting to increase reviews for their products and ratings.
Responsive Brand Advertising: These are a kind of Amazon advertising format that automatically generates advertisements using a brand’s assets including logos, images and product listing. The ads are designed to be adapted to various locations and gadgets.
Sponsored products: Sponsored Products are an aspect of the Amazon marketing format. It permits vendors and sellers to advertise particular products on Amazon’s search results as well as on product page details.
Sponsored Brands: sponsored brands (formerly known as Headline Search ads) are a kind of Amazon advertising format that allows advertisers to showcase their brand as well as a variety of their products within search results.
Sponsored Display Advertisements: Sponsored Display Ads permit advertisers to market their products to Amazon customers both in and out of Amazon’s marketplace by targeting their audience by their interests and behaviors.
Search term report: A Search Term Report gives insight into the keywords that trigger the ads of an advertiser. It aids in maximizing the targeting of keywords and also the identification of negative keywords.
Seller Central: It is the platform that lets third-party sellers run their Amazon business, such as selling products, coordinating orders and running campaigns for advertising.
Storefront: An Amazon Storefront is a custom and branded page in Amazon where sellers can display their products and branding.
Sessions: The session that one has on Amazon is a single visit to the app or website by the user. It begins when a person is able to access Amazon and will end when they exit or are inactive for a specified time.
SEO Impression Share: It is a metric which indicates the percentage of eligible impressions the ads of an advertiser received in relation to the total number of impressions available for the targeted keywords.
Sponsored Brands Video: Sponsored Brands Video is an advertising format that permits advertisers to integrate the video element into their sponsored Brands campaigns, offering an interactive and enjoyable experience for their customers.
Session Percentage: Session Percentage is a metric that shows the percentage of shoppers who viewed a product detail page after clicking on an ad. It helps measure ad engagement and effectiveness.
Targeting: It is the criteria that advertisers employ to define the audiences they wish to reach with their advertisements. This could include things like keywords, demographics, as well as the way people shop.
TACoS (Total advertising cost of sales): It is a measurement that measures the proportion of sales revenues generated by Amazon advertising in relation to total amount spent on advertising. It can help assess the efficacy and effectiveness of advertising campaigns.
TACOS = Ad Spend/Total Sales (Ad sales + Organic Sales) x 100
Top of Search (TOS): Top of Search position is the most prominent advertisement position in the uppermost part in Amazon the results of a search. It’s an extremely visible position which can result in huge traffic and even sales.
Title Optimization : It is the process of creating informative and keyword-rich titles that increase a product’s visibility as well as its click-through rate within search results.
Traffic: In the context of Amazon the term “traffic” refers to the amount of people who visit the detail pages of a product or the storefront. A higher volume of traffic could lead to increasing sales and potential customers.
Two-Step URL: A Two-Step URL is a specially crafted URL that sellers and advertisers use to drive external traffic to a specific Amazon product listing. It can include search keywords to influence Amazon’s search algorithm.
Tracking pixel: The tracking pixel can be described as a tiny piece made of code which advertisers may embed on their sites to monitor user behavior as well as conversions and other actions, allowing them to assess the efficacy of their advertising campaigns.
Text Ads: Text advertisements are a kind of Amazon advertising format, which is comprised mostly of text. They can be found in different ad positions that include search results as well as page descriptions of products.
View through Rate (VTR): View Through Rate is a measure that calculates the percentage of viewers who saw an advertisement but didn’t click on it. It’s usually associated with video advertisements and measures the level of awareness for ads.
Vendor Central: Vendor Central an Amazon-provided platform that allows Amazon to distributors and manufacturers who want to market their goods directly Amazon for wholesale sales to vendors. They may also gain the ability to use Amazon’s marketing tools.
Video ads: Video ads on Amazon let advertisers promote their brand or products with videos. They are available in a variety of places on Amazon and include product details pages.
Viewability The measure of viewability is whether an advertisement was actually seen by users. When it comes to Amazon advertising, the metrics of viewability assist advertisers to determine the effectiveness of their ads locations.
Wish Lists: A wishlist is a feature of Amazon that lets customers save items they are interested in to be able to refer back or to purchase. Advertisers could use data from wishlists to determine the preferences of their customers.
White Lists: A whitelist is an approved list of websites and apps or places in which ads from advertisers can be displayed. It’s used to regulate the locations where ads are displayed within the course of a campaign.
Wasted Spend: Wasted spending refers to the amount of advertising budget which is spent on impressions or clicks that don’t result in the desired action or conversions that result in the wasteful spending of the ad budget.