Talk to usAmazon Ads and KDP reports use several measures that describe different parts of book advertising. This glossary explains the common terms and how they relate. Amazon may update campaign features and reporting, so check the current help pages linked below when making account changes.
Amazon Ads and PPC
Amazon Ads
Amazon Ads is Amazon’s advertising platform. Book advertisers use supported ad products to promote books in Amazon stores and pay according to the campaign’s pricing model. Confirm current campaign eligibility and available ad products in your account.
Amazon PPC
PPC means pay per click. In a pay-per-click campaign, an advertiser is charged when a shopper clicks an ad. A click is a cost, not proof that the shopper bought the book or that the advertising was profitable.
Sponsored Products and Sponsored Brands
Sponsored Products
Sponsored Products are cost-per-click ads that promote individual products in Amazon stores. Advertisers can use automatic or manual targeting, depending on their campaign setup and eligibility. See Amazon Ads’ advertising FAQ for current product details.
Sponsored Brands
Sponsored Brands are ads that can showcase a brand and its products in Amazon shopping experiences. Available creative formats and eligibility can vary by marketplace and account. Check the campaign builder for the current options that apply to your books.
Ad efficiency metrics
ACoS: advertising cost of sales
ACoS compares advertising spend with sales attributed to ads. It is calculated as ad spend ÷ attributed ad sales × 100. For example, $20 in ad spend against $100 in attributed sales is a 20% ACoS. ACoS describes ad spend as a share of attributed sales; it does not directly measure royalties or profit. Amazon provides the formula in its ACoS guide.
ROAS: return on ad spend
ROAS compares attributed ad sales with advertising spend: attributed ad sales ÷ ad spend. If $100 in attributed sales came from $20 in spend, ROAS is 5. This is the inverse view of ACoS when both use the same attribution and reporting window. It is not the same as profit or return on all business costs.
Break-even ACoS
Break-even ACoS is an estimate of the highest ACoS at which ad-attributed sales might cover the relevant variable costs. For a simple one-book calculation, divide the royalty earned on a sale by the sales value attributed to that sale, then convert to a percentage. The estimate can differ by format, list price, marketplace, discount, delivery costs, read-through, and other expenses. Amazon Ads describes break-even ACoS in relation to margin in its ACoS guide.
Where and what an ad targets
Placements
A placement is where an ad appears in a shopping experience, such as a search results page or product page. Placement availability and controls depend on ad format and campaign settings. Compare performance by placement only when your reporting provides a useful, consistent view.
Keyword and product targeting
Keyword targeting uses selected words or phrases to match a campaign with shopping queries. Product targeting can direct ads toward selected products or categories, where supported. The exact targeting options depend on the campaign type.
Search terms
A search term is a query shoppers used that was matched to an ad. A search term may differ from the keyword or target configured in the campaign because matching rules can connect related queries.
Negative keywords and negative product targets
Negative targets are exclusions that prevent ads from matching selected search queries, products, or brands under supported campaign settings. They can help limit irrelevant traffic, but exclusions should be based on campaign goals and evidence. See Amazon’s Sponsored Products targeting guide.
Campaign budgets
A campaign budget sets a spending limit for a campaign over its configured period. It is a control on ad spend, not a forecast of sales or a promise that the budget will be fully spent.
KDP revenue and publishing economics
KDP royalties
A royalty is the amount KDP reports as earned by an author or publisher under the applicable pricing, marketplace, and program terms. Royalties vary across print and ebook formats, prices, marketplaces, refunds, and other conditions. Refer to your KDP reports and current royalty terms for your actual figures.
KENP: Kindle Edition Normalized Pages
KENP Read records normalized pages customers read through Kindle Unlimited for eligible books. KDP calculates Kindle Unlimited royalties using eligible pages read and the monthly KDP Select Global Fund; page reads and resulting earnings can be updated before reports are finalized. See KDP’s Kindle Unlimited royalty explanation.
Ad-adjusted royalties and net profit
Subtracting ad spend from royalties can help an author see an advertising-adjusted royalty amount: royalties − ad spend. It is a useful view of two important figures, but it is not a complete business profit calculation if it excludes editing, production, software, tax, and other costs. Also remember that advertising-attributed sales and total KDP royalties do not always line up perfectly because they use different reporting systems and attribution rules.