Advertising cost of sales (ACOS) is a helpful metric to understand campaign effectiveness relative to the amount spent on advertising. ACOS is available in Campaign manager and through downloadable reports.
Advertising cost of sales (ACOS) is the percentage of direct sales you made from sponsored ads campaigns. ACOS, is calculated by dividing advertising spend invested by the total sales generated (ACOS = Ad Spend / Sales). For example, if you spend $20 on a sponsored ads campaign and it generates $100 in sales, your ACOS is 20%.
ACOS is the inverse of Return on ad spent (ROAS), which is calculated by dividing the total sales generated by the advertising spend invested on the campaign (ROAS = Sales / Ad Spend). Unlike ROAS, ACOS is represented as a percentage.
ACOS includes attributed sales for advertised products, and attribution varies by campaign and advertiser type:
|Sponsored Products||Sponsored Brands||Sponsored Display (beta)|
|Sellers||7 days||14 days||14 days|
|Vendors||14 days||14 days||14 days|
ROAS is available in Campaign manager and through downloadable reports.
Use ACOS to understand how efficient your advertising investment is relative to your advertising spend. As ACOS decreases, your campaign becomes more efficient because you’re spending a lower percentage of sales on advertising. Depending on your performance objective, ACOS is one metric that can be used to measure the effectiveness of ad products, campaigns, and keywords. Comparing ACOS over time or against similar tactics can help provide insight into where additional resources should be allocated.
To minimize your spend on advertising, you’ll want to lower your ACOS. If your goal is to increase exposure of a new or existing ASIN, you might be okay with a higher ACOS for a set period of time.
|Targeting type||Low-performing campaigns||Top-performing campaigns|