Metric Glossary

Campaign Budget

This allows the seller to put a limit on the amount they are willing to spend on Amazon PPC advertising.

2 Types of Sponsored Products Budget:

1. Daily Budget - the amount that you are willing to spend on a campaign per day. You may opt for daily budget if you want to have a balance between your budget and spending.

2. Fixed Daily Account Budget - it is a fixed amount or value per day for the entire advertising account. If you want to have more control on your expenditure, you may set a fixed daily account budget in your Campaign Manager

Impressions

Number of times your ad is appearing on Amazon or being viewed by a customer. Also called as an ad view. This is an important metric to measure how effective the keywords you used in your campaigns. Bid competitively on keywords to gain higher ad impressions.

Clicks

Number of times shoppers have clicked on an ad.

Click Through Rate (CTR)

The ratio of how often customers click on your ad when it is shown. Amazon provide you the CTR for each campaign and keyword.

If you have a low CTR, check the following to improve it:

• target relevant keywords

• use an enhance product image / clear quality image

• compelling product title, bullet points and product description

• must have more than 3 star rating

Spend

The total amount of your advertising budget you've spent.

CPC (Average Cost per Click)

Average cost per click (CPC) is the average amount that you have spent for a click. CPC is calculated by dividing total spend by the total number of clicks.

This metric gives you an idea on the level of competition. A higher CPC means a lot of sellers are bidding on the keyword since they would also want the best placement for their ad.

Total Orders

Number of the orders placed for your brand's products.

Attributed Sales

The total dollar value of your brand's products sold. It's important to note that sales data can take up to 24 hours to appear in reports.

ACOS (Advertising Cost of Sales)

ACOS is the amount you’ve spent on a campaign divided by total sales. This tells you the percentage of your sales you've spent on advertising. Ideally, you'll want high revenue with low ACOS. Low ACOS means that your campaign is performing efficiently.

TACOS (Total Advertising Cost of Sales)

Total Advertising Cost of Sales or TACOS is a metric use to determine profitability. We refer to this metric to see how much the advertising is driving sales on the whole account.

Formula: TACOS = Total Ad Spend/Total Sales x 100