ACoS (Advertising Cost of Sale)
The percentage of sales spent on advertising. (Ad Spend ÷ Sales) × 100.
Example: £100 ad spend generating £400 sales results in 25% ACoS.
Glossary
Amazon advertising glossary
Essential terms for Amazon PPC success
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Target ACoS
The acceptable advertising cost of sale derived from margin and growth goals. It guides bids, budgets, and exclusion decisions.
ROAS (Return on Ad Spend)
Revenue generated per pound of ad spend. Calculated as Sales ÷ Ad Spend.
Example: £400 sales ÷ £100 ad spend = 4x ROAS.
TACoS (Total Advertising Cost of Sale)
The percentage of total sales, including organic, spent on advertising.
Example: (Ad Spend ÷ Total Sales) × 100.
CTR (Click-Through Rate)
The percentage of impressions that result in clicks. Clicks ÷ Impressions × 100.
CVR (Conversion Rate)
The percentage of clicks that convert to orders. Orders ÷ Clicks × 100.
CPC (Cost Per Click)
Average cost per click. Ad Spend ÷ Clicks.
Attribution
The measurement rule that connects ad clicks or views to later orders, sales, and performance reporting.
Keyword Bidding
Maximum CPC you are willing to pay for a keyword.
Negative Keywords
Keywords you do not want your ads to show for.
Search Term Report
Shows actual queries that triggered your ads.
Sponsored Products
Individual product ads appearing in search results and detail pages.
Sponsored Brands
Ads featuring brand logos, headlines, and multiple products.
Sponsored Display
Display ads for retargeting and targeting on and off Amazon.
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