Glossary of terms

We’ve rounded up terms that will help you navigate the digital advertising process.
Some terms are applicable to the digital advertising industry and some terms are unique to Amazon Advertising.


Glossary of terms

  • Advertising creative: The advertising imagery, video, and, text that communicates your message to your audience.
  • Advertising format: The type of advertisement that you use. Examples of common formats include video and display.
  • Advertising placement: The place where an advertisement appears. Examples include in search queries on Amazon.com, on Amazon devices (such as Fire TV or Fire tablet), and on third-party sites.
  • Advertising objective: The goal you want to achieve from digital advertising. Examples include brand awareness, consideration, purchase, and loyalty.
  • Attribution: Before someone buys a product or service, they may see several advertisements for it. For example, they may hear a radio commercial, see a billboard, and then see an online ad. Attribution refers to which advertisement was responsible for informing that purchase. Different services have different attribution models.
  • Budget: The amount of money you will not exceed spending on your advertising campaign.
  • Bidding: The amount an advertiser is willing to pay to have shoppers click on an advertisement. With Amazon Advertising, you can use automatic bidding (your bid will automatically be optimized to help you reach your objective), or, you can choose manual bidding and set your own bid.
  • Consumer purchase journey/consumer decision journey: A term that refers to the sum of experiences that shoppers go through when interacting with your company and brand. Instead of looking at just a part of a transaction or experience, the customer journey documents the full experience.
  • Keyword: Keywords are used to target your ads to relevant shopping queries. You may select the keywords you’d like to target using manual targeting or let Amazon select the keywords using automatic targeting.
  • Programmatic: A term used in the digital advertising industry which refers to the automated buying and selling of digital advertising inventory.
  • Demand side platform, or DSP: The software that is used to access and decision against digital advertising inventory. The solution for Amazon Advertising is Amazon DSP. Amazon DSP offers both self-service and managed options.
  • Managed vs. self-service: Products in digital advertising are often categorized as either self-service or managed. Self-service products can be used directly by the advertiser or agency, while managed services require varying levels of support.


Terms for measuring results of campaigns

  • Advertising cost of sales (ACOS): A metric used to measure performance of Sponsored Products campaigns. ACOS represents the ratio of ad spend to promoted product sales. It is calculated as ad spend divided by attributed sales.
  • Return on ad spend (ROAS): A measure of how many dollars you earn for every dollar you spend on advertising. The standard calculation for ROAS is (Revenue – Cost) / Cost.
  • Brand lift: A measurement of the direct impact your ads have on a shopper’s perception and behaviors toward a brand. This metric is calculated in a number of ways using post-exposure success metrics, such as brand awareness, and likelihood to purchase metrics.
  • Impressions: The number of times an ad was rendered on a page or device.
  • Reach: The total number of unique users who are shown the same ad on any web page or screen.
  • Click-through rate (CTR): The percentage of ad impressions that are clicked as compared to the entire number of clicks. The standard calculation for CTR is (clicks/impressions) x 100.
  • Conversions: An action that a customer completes; this phrase can be used to refer to any number of actions, including clicking “Add to Cart,” completing a purchase, etc.
  • Cost-per-click (CPC): The average cost you pay each time someone clicks your ad. This number is calculated by dividing the amount of money you spent on an ad divided by the number of clicks it received. Sponsored Products and Sponsored Brands are examples of cost-per-click ads, so you only pay when your ad receives clicks.
  • Cost per thousand impressions (CPM): The average cost you pay to deliver 1,000 impressions of your ads.
  • New-to-brand metrics: New-to-brand metrics describe customers purchasing your brand/product for the first time on Amazon over the past year. These metrics gives advertisers the tools to estimate the cost of engaging new customers on Amazon and identify the most efficient channels and tactics to achieve their campaign goals.