ACOS

Advertising

Advertising Cost of Sales. ACOS = ad spend ÷ ad-attributed revenue, expressed as a percentage. A 25% ACOS means €0.25 of ad spend produced €1 of attributed sales.

ACOS, or Advertising Cost of Sales, is a critical metric for evaluating the efficiency of advertising campaigns on Amazon. Calculated as ad spend divided by ad-attributed revenue, expressed as a percentage, a 25% ACOS indicates that €0.25 of ad spend generates €1 in attributed sales. Sellers in the EU, particularly in marketplaces like DE, FR, and IT, often aim for an ACOS below 30% to ensure profitability. The formula allows advertisers to assess performance over specific time frames, such as weekly or monthly, enabling timely adjustments to campaigns. A lower ACOS may suggest effective targeting and ad optimization, while a higher ACOS could indicate the need for improved keyword strategies or ad placements. Sellers can use tools like the Search Term Report to identify high-performing keywords and refine their advertising strategies. Additionally, Amazon's Sponsored Products program allows sellers to create ads that can lead to increased visibility and sales, but the trade-off is that higher visibility may also lead to increased competition and potentially higher ACOS. Monitoring ACOS regularly matters, especially during peak shopping seasons like Black Friday and Christmas, when advertising costs can fluctuate significantly.

Correlati: TACOS, Sponsored Products