If you’re advertising on Amazon but don’t fully understand the terminology, you’re not alone. Many sellers struggle to make sense of the Amazon PPC terms that impact their campaigns.
This Amazon PPC glossary explains the most important advertising metrics and concepts—so you can make smarter decisions, increase ROI, and grow your business.
Whether you’re new to Amazon advertising or optimizing your campaigns, this keyword-rich PPC glossary will help you get ahead of the competition.
Why This Amazon PPC Glossary Matters for Sellers
Amazon advertising is filled with acronyms, metrics, and performance data. If you don’t understand what those terms mean, you’ll struggle to:
- Analyze campaign performance accurately
- Make data-driven bidding decisions
- Reduce wasted ad spend
- Improve your ACoS and TACoS over time
This guide to Amazon advertising terms gives you the clarity you need to run profitable campaigns in Amazon’s competitive ecosystem.
Top Amazon PPC Terms Every Seller Must Know
1. ACoS (Advertising Cost of Sales)
Definition: The ratio of ad spend to ad revenue.
Formula: Ad Spend ÷ Ad Sales
Why it matters: ACoS tells you how much you’re spending to make each dollar in ad sales.
SEO Tip: Monitor ACoS closely to determine ad efficiency.
2. TACoS (Total Advertising Cost of Sales)
Definition: The percentage of ad spend in relation to total revenue (including organic sales).
Why it matters: TACoS reveals how your ads impact your overall Amazon sales performance.
Pro Tip: A rising TACoS indicates poor organic lift—review keyword targeting.
3. CTR (Click-Through Rate)
Definition: The percentage of people who saw your ad and clicked on it.
Formula: Clicks ÷ Impressions
Why it matters: CTR reflects how compelling your ad is.
SEO Insight: Low CTR may signal weak ad copy or irrelevant targeting.
4. CVR (Conversion Rate)
Definition: The percentage of clicks that turn into sales.
Formula: Sales ÷ Clicks
Why it matters: CVR shows how well your listing converts shoppers.
Optimization Tip: Improve CVR with stronger product images and bullet points.
5. Impressions
Definition: The total number of times your ad was displayed on Amazon.
Why it matters: High impressions with low CTR or CVR means wasted ad spend.
PPC Insight: Reevaluate targeting and match type if impressions aren’t converting.
6. Search Terms vs. Keywords
- Keywords: What you bid on in campaigns.
- Search Terms: What users actually type into Amazon’s search bar.
Why it matters: Reviewing search term reports helps you refine targeting.
SEO Strategy: Add irrelevant search terms as negative keywords.
7. Negative Keywords
Definition: Words or phrases you exclude from your campaigns to prevent irrelevant clicks.
Why it matters: Negative keywords reduce wasted spend and improve targeting accuracy.
Example: Exclude “free” if you sell premium-priced products.
8. Match Types: Broad, Phrase, Exact
- Broad Match: Your ad shows for loosely related terms.
- Phrase Match: Your ad shows for queries containing your keyword phrase.
- Exact Match: Your ad shows only for the exact keyword.
Why it matters: Match types impact visibility and relevance.
PPC Best Practice: Test all match types and optimize based on performance.
9. Amazon Campaign Types
- Sponsored Products: Ads for individual listings (most used).
- Sponsored Brands: Ads featuring your brand, logo, and multiple products.
- Sponsored Display: Retargeting and display-based ads.
Why it matters: Each campaign type reaches a different stage in the buyer journey.
Optimization Tip: Diversify your campaign types to capture more traffic.
10. Dynamic Bidding / Bid Adjustments
Definition: Amazon automatically increases or decreases your bids based on the likelihood of conversion.
Why it matters: Dynamic bidding improves efficiency by adjusting your bids in real time.
Pro Strategy: Use AI tools like Bidventor to automate this process and increase ROI.
How to Use This Amazon PPC Glossary to Optimize Campaigns
Now that you know the key Amazon advertising terms, it’s time to apply them.
Here’s how to leverage this Amazon PPC glossary to improve performance:
- Review Search Term Reports weekly
- Identify and add negative keywords
- Monitor ACoS, TACoS, and CVR regularly
- Test different match types
- Diversify campaign types based on funnel stage
- Automate bidding strategies with AI tools
Automate and Scale with Bidventor
Managing PPC campaigns manually can be time-consuming and error-prone. That’s where Bidventor comes in.
Bidventor is an AI-powered Amazon PPC optimization tool that:
- Analyzes real-time data
- Adjusts bids based on performance
- Lowers ACoS and improves TACoS
- Increases ROAS without manual input
Bidventor helps sellers win the Amazon advertising game by doing the heavy lifting—so you can focus on scaling your brand.
Conclusion: Amazon PPC Glossary = Better Ad Results
Understanding Amazon PPC terms is critical to success. This Amazon PPC glossary gives you the foundation to run smarter ads and optimize campaigns effectively.
By mastering these terms and pairing them with automation tools like Bidventor, you can:
- Cut wasted ad spend
- Improve conversions
- Scale ad performance efficiently
Start applying these Amazon PPC terms today—and let Bidventor turn your knowledge into profit.
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