generic jargon

Question 1

Advertising cost of sales (ACoS):

Answer 1

A metric used to measure the performance of Sponsored Products and Sponsored Brands campaigns. ACoS represents the ratio of ad spend to promoted product sales (Sponsored Products) or overall brand sales (Sponsored Brands). It is calculated as ad spend divided by attributed sales.

Question 2

Attribution:

Answer 2

It refers to which advertisement was responsible for informing that purchase. Different services have different attribution models, taking into account different factors such as how customers interacted with ads and when that interaction occurred relative to a purchase.

Question 3

Brand lift:

Answer 3

A measurement of the direct impact your ads have on a shopper’s perception and behaviours 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.

Question 4

Cost-per-thousand-impressions [technically, “cost per mille”] (CPM):

Answer 4

The average cost you pay to deliver 1,000 impressions of your ads.

Question 5

Return on ad spend (ROAS):

Answer 5

A measure of how many dollars you earn for every dollar you spend on advertising. The standard calculation for ROAS is (total ad sales) / (total ad spend).

Question 6

Return on investment (ROI):

Answer 6

A measure of how much net profit you earn for every dollar you spend. The standard calculation for ROI is (revenue – cost) / (cost).