This document defines key terminology used in pay-per-click (PPC) advertising campaigns on Amazon. It explains that a PPC campaign involves advertisers paying Amazon each time a shopper clicks their ad. Impressions refer to the number of times a product listing is viewed, while clicks are the number of times the listing is clicked. Click-through rate is the ratio of clicks to impressions. Cost-per-click is the average amount paid for each click. Advertising cost of sales is advertising spend divided by sales. Conversion rate refers to the percentage of clicks that result in purchases. The document provides formulas and targets for these key metrics.

1. PPC Terminologies
Adiba Sohaib
FBAM Batch-5
mentor:Sir Fawad umer

2.  PPC Campaign
 Impressions
 Click
 Click Through Rate
 Cost per Click
 Advertising Cost of Sales
 Conversion Rate

3. PPC Campaign:
 Amazon PPC is an advertising model in which advertisers pay a fee to Amazon
when a shopper clicks on their ad (pay-per-click). Well-run Amazon PPC
campaigns help you increase your sales, improve your organic rankings, and
build brand awareness. Amazon PPC sales have a direct influence on a
product’s organic ranking on Amazon. Therefore, more sales generated via
Amazon PPC ads will have a positive effect on the organic ranking of your FBA
or FBM product.

4. Impressions:
 When a buyer searches a keyword and roll over the cursor on your listing, it
counts as 1 impression (scrolling)
Click:
 The number of times shoppers clicked on your product ad to view the
complete product detail page.
 It mainly depends on front image and price

5. CTR:
CTR stand for Click through Rate, it is the ratio of the Impressions versus
the clicks. For example, if you get 1 click on your ad per 100 impressions,
you’ll have a 1% CTR.
 How to calculate CTR
What’s a good CTR to have on Amazon? The average CTR is 0.41%. Being right at
or above that is usually a good target.
-Average CTR on Amazon0.41%
 How to Improve your CTR
A really low CTR means buyers on Amazon aren’t finding your ad compelling
enough to click on it based on what they seek.
 This can either mean you need to optimize your keyword targeting OR you
have quality issues with your listing. Or both!
 Listing quality issues that can affect your CTR negatively usually include:
 Main image quality
 Title quality
 Number of reviews
 Review score
 Fulfillment method (FBA or FBM)
 Pricing

6. CPC:
 CPC stand for cost per click, Average cost-per-click (Avg. CPC) is calculated by
dividing the total cost of your clicks by the total number of clicks. CPC
measures the overall cost per click of your PPC ads. For example, if you paid
$100 for your PPC ad and it receives 100 clicks, you’re spending $1 per ad
click. CPC is different for different ads it depends upon a number of factors
including the keywords, and category that you are targeting. Additionally, the
competition for a keyword also determines the cost per click that you have to
pay for a particular advertisement.
 Why CPC is important to your PPC campaigns.
Cost-per-click is important because it is the number that is going to determine the
financial success of your PPC campaigns, As an advertiser, your cost per click will
always be less than or equal to your maximum bid, as it is an average of bids against a
series of competitors over a period of time.
The CPC is the actual price that you pay for these clicks based on the keywords that
you are bidding on. How much you pay for clicks impacts a number of different areas of
your campaign's performance.

7. ACOS:
ACOS stand for Advertising cost of sales, formula: ACOS % = ad spends ÷ sales
This is a very commonly discussed topic and most of the times, there are two
factors which impact the acos or cost per acquisition - Cost per Click and
Conversion
CR:
 CR stand for conversation rate, The number of people who visited your listing
versus the number of people who purchased your product.
orders/clicks*100=CR%
 Conversation rate means how many people bought your product after landing
to your listing
 In the end conversation rate describe the business stability , it tells that
business is going to loss or profit.

8. THANKYOU!
ALLAH HAFIZ