Why Amazon PPC feels like learning Greek

ppc metrics sponsored products Jan 28, 2020

Amazon PPC is awash with technical jargon and acronyms, so much so that it can feel like learning a foreign language at times. 

So I thought it might be helpful to breakdown some of the essential terms you need to know if you're new (or maybe not so new) to Amazon ads - in plain English - so you can up your PPC game.

I'm going to start with Cost Per Click (CPC). This is how much Amazon charges each time a visitor clicks on an ad. Because the value of clicks can vary between campaigns, it is based on the overall, or average, amount paid for one click. That's the 'official' definition.

However, you can think of Cost Per Click in the following ways:

When you start a new campaign

Your Amazon CPC cost gives you an idea of the competition for each keyword. The higher the CPC, the more competitive the keyword. That's why general, high traffic short-tail keywords e.g. silicone spatula, cost more than specific, highly relevant long-tail keywords e.g. heavy duty red silicone spatula.

Once your campaign is up and running

CPC is a performance metric that reflects the efficiency of your ad spend (or bang for your buck). As you begin to score more clicks through that keyword than what you initially paid for, your CPC will lower, indicating the keyword's relevancy and campaign's success.  

If you have found this useful, and you want to be able to know your CPCs from your CTR's, please let me know! I'll be happy to 'de-jargonize' more essential Amazon PPC terms for you.

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