As an advertiser, getting to grips with a new ad platform can be confusing, particularly when people start using acronyms and terminology you’ve never come across before.
Many of you will be familiar with the vernacular of Google Ads and some of it is common to all platforms. Amazon Advertising does, however, have some of its own platform-specific terms.
To make things just that little bit easier, we’ve put together an Amazon Advertising glossary to make sure you know your ACoS from your Dynamic Bids.
ACoS (Advertising Cost of Sale)
ACoS is the amount you’ve spent on a campaign divided by total sales during the campaign. It tells you the percentage of your sales you've spent on advertising. With this in mind, typically, you want to achieve a low ACoS.
Being ‘Retail Ready’ means your product detail pages include all the necessary information for a customer to make a purchase. This includes having a detailed product title, description and images, customer reviews (minimum 15 reviews), star rating (3.5 stars or higher), inventory, the buy box and utilising enhanced content.
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Dynamic Bids - down only
Using dynamic bids, Amazon can adjust your bid in real time when your ad may be less likely to convert to a sale. With this selection, Amazon may decrease bids by up to 100%.
Dynamic Bids - up and down
In this instance, Amazon can adjust your bid in real time, increasing bids by a maximum of 100% when your ad may be more likely to convert to a sale, as well as make bids up to 100% lower when less likely to convert to a sale.
Keyword Match Types
With broad match, the customer search term must contain all the keyword terms, or close variations.The words can be in any order and contain additional words. Utilising broad match keywords could be useful for seeing the longer-tail search terms users are searching to find your product.
With phrase match, the customer search term must contain the exact phrase, or close variations, and be in the same order as keyword term. The search term may contain words before or after keyword term phrase.
With exact match, the customer search term must be the exact word or phrase, or very close variations. The search term needs to be in the same order and cannot contain additional words.
Negative Phrase and Exact Match
Negative match types prevent an ad from being served if the customer searches for the exact word or phrase or close variants.
Placements are places across Amazon where your ads may appear. Currently, you can differentiate your bids and view performance of your Sponsored Products by three placement groups.
Top of Search (first page)
The top of search (first page) refers to the Sponsored Products at the top row on the first page of search results.
Rest of Search
Rest of search refers to Sponsored Products shown in the middle or at the bottom of search results, and all Sponsored Products in the second page of search results and beyond.
Product pages refers to Sponsored Products placements on the product details page, and certain other placements off search results like the add-to-cart page.
Campaign portfolios offer a new way to create custom groupings of your Sponsored Products and Sponsored Brands campaigns. With campaign portfolios, you can choose to mirror the structure of your business and organize campaigns by brand, category, season, or any way you choose.
Sponsored Brands new-to-brand metrics enable you to measure orders and sales of your products generated from first-time customers of your brand on Amazon. Amazon determines whether an order is new to your brand by reviewing the last 12 months of a customer's purchase history. If the customer has not purchased from your brand within the 12 month look back window, the order is considered new-to-brand.
And there we have it! You should now be equipped with an understanding of the terminology required to get yourself up and running on Amazon Advertising.
Having said that, if you have any questions at all about Amazon Advertising and the opportunities it presents, please get in touch today and we’ll do our best to help...