If you run Amazon Sponsored Products, you've probably received a "Search Term Report" — a spreadsheet full of numbers and abbreviations that can be overwhelming at first glance. This post breaks down the 8 most basic terms in this report, one by one, using simple example numbers.
A Sample Scenario
Let's say a seller of Product A ran ads for one week. The numbers below are a simplified, hypothetical example.
| Metric | Value |
|---|---|
| Impressions | 1,000 |
| Clicks | 50 |
| Spend | $25 |
| 7 Day Total Sales | $100 |
| Orders | 5 |
Breaking It Down
Impressions: The number of times your ad appeared on a customer's screen. In this example, 1,000 impressions. An impression doesn't mean a click happened — it just means the ad was shown.
Clicks: Of those 1,000 impressions, how many times a customer actually clicked the ad. 50 clicks in this example.
CTR (Click-Through Rate) = Clicks ÷ Impressions: 50 ÷ 1,000 = 5%. Out of every 100 impressions, 5 result in a click. A higher CTR signals your ad image/copy is catching people's attention.
CPC (Cost Per Click): The average amount you paid per click. Spend $25 ÷ Clicks 50 = CPC of $0.50.
Spend: The total amount actually spent on advertising during the period. $25 in this example.
7 Day Total Sales: Total sales generated by customers who clicked the ad, within 7 days. $100 in this example.
ACOS (Advertising Cost of Sales) = Spend ÷ Sales: $25 ÷ $100 = 25%. It cost $25 in ad spend to generate $100 in sales. Lower is generally considered more efficient.
ROAS (Return on Ad Spend) = Sales ÷ Spend: $100 ÷ $25 = 4. Every $1 in ad spend generated $4 in sales. Higher is better (ACOS 25% and ROAS 4 describe the same relationship from opposite directions).
Orders / Conversion Rate: Orders is the actual number of orders placed (5 in this example). Conversion Rate (CVR) = Orders ÷ Clicks = 5 ÷ 50 = 10%. 1 out of every 10 customers who clicked went on to purchase.
Key Takeaways
Impressions tell you "how many times it was seen," Clicks tell you "how many times it was clicked," CTR tells you "how compelling it was," CPC/Spend tell you "how much you spent," Sales/ACOS/ROAS tell you "how much you earned relative to what you spent," and CVR tells you "what share of clickers actually bought."