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This article applies to selling in: United Kingdom

Advertising cost of sales (ACOS)

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.

How to use ACOS

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.

Note: For Sponsored Products campaigns, your sales metrics can take up to 48 hours to populate. For Sponsored Brands, brand sales metrics can take up to 12 hours to populate. As a result, ACOS is not available in the “Today” date range and might be delayed in the “Yesterday” date range.

ACOS recommendations by campaign targeting type

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
Manual targeting
  • Consider lowering bids or pausing specific keywords that have a high ACOS.
  • Consider adding more keywords to see if they can improve campaign performance.
  • Consider increasing your campaign budget.
  • Review your list of keywords and identify the top performers. Increasing your bid on top performing keywords may generate additional impressions, clicks, and sales.
Automatic targeting
  • Consider adding negative keywords for search terms that have a high ACOS.
  • Consider lowering your default bid for the entire campaign.
  • Consider increasing your campaign budget.
  • Consider increasing your default bids to generate additional impressions, clicks, and sales.
Note: Automatic targeting is only available for Sponsored Products campaigns.
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