Amazon Listing Optimization
Amazon Advertising Glossary: The Key Terms You Need to Know
Keyword research is worth your time and resources. Learning the basics of the PPC keyword research will give you a stronger foundation to build upon later.
Did you know? According to Four in every $10 spent online happen on Amazon. In fact, 80% of online growth comes from Amazon sales.

If you could make your ads rise above the multitude of ads that are already on Amazon, you stand a chance at earning those four dollars and multiply it by many times.

Keyword research plays a big role. By doing your keyword homework, you'll know which words or combination of words to add into your Sponsored Ads, so your ad can show in front of the right shopper at the right time and shoppers can see that you have what they're looking for.

That's why learning the basics of the PPC keyword research will give you a stronger foundation to build upon later.

The best way to gain a solid foundation is to familiarize yourself with the terminologies you will encounter navigating Amazon Advertising. Below are the main terms that should become second nature to you.

Glossary of Terms

Key Terminologies

Seller – Merchants who sell directly to Amazon customers and manage products through Seller Central.

Vendor – Merchants who sell products to Amazon, which in turn sells to the customers. Vendors manage products through the Vendor Central or Advantage Central.

Campaign Manager – The control panel of Seller Central where you can manage your ad campaigns, monitor performance, and measure ROI through this portal.

Amazon Ad Campaign Organization Terminologies

Product Ad – Consists of a title, product image, its price, star rating, and amount of reviews.

Campaign – The umbrella framework comprising ad groups and daily budgets. You launch campaigns to reach business goals.

Ad Group – Ads that share the same set of keywords.

Keywords – A set of words used for ad targeting. Adding keywords to your ad group ensures your product ad will appear to potential buyers.

Hidden Keywords – Also known as backend keywords, these are the secondary keywords that you may enter into your Amazon seller account. Hidden keywords let you capitalize on secondary, high-search-volume keywords related to the products you sell.

Negative Keywords – A set of words used to exclude customer search terms. Adding negative keywords can help you maximize your advertising spend.

Default Bid – The amount you're willing to spend on an ad campaign. Your bid applies on ad groups, but you can set a specific amount on each keyword.

Campaign Report Terminologies

Impressions – The number of times your ad appears to shoppers.

Bid – The maximum amount you're willing to spend for each click on your ad. If you set the highest bid, your ad will have a higher chance of appearing before shoppers.

Click – A shopper's act of clicking on your ads. On Campaign Manager, clicks are the total number of times shoppers click on your ads.

Click through rate (CTR) – The total number of clicks divided by the total number of impressions. (Note that a high CTR doesn't guarantee comparable sales BUT it will increase the chances of winning the bid auction at a lower cost per click.)

Cost – The amount Amazon charges for each click on your ad. Cost is always lower than or equal to the bid.

Cost per click (CPC) – Total cost divided by total clicks. By looking at your CPC, you can tell if you're spending too much, too little, or just enough for each ad click.

Conversion – The desired outcome of Amazon PPC ads. When a shopper clicks on your ad then buys your product, you get a conversion.

Spend – The total amount you've spent on ads clicks

Sales – The total product sales you earned from clicks on your ads

Advertising Cost of Sale (ACoS) – An Amazon metric, ACoS is the quotient of the total Ad Spend divided by total Sales.

Knowing the exact words shoppers use when they're looking for things to buy on Amazon can make a significant impact on your ad campaign. Use this glossary to supercharge your Amazon Ad campaigns.
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