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Marketing Metrics

ACoS (Advertising Cost of Sale)

Definition

Amazon's measure of ad efficiency: ad spend as a percentage of the sales those ads produced. It is the inverse of ROAS.

Formula

ACoS % = Ad Spend ÷ Ad-Attributed Sales × 100

ACoS only tells you something when compared with your margin. If your contribution margin before ads is 35%, a 30% ACoS is profitable; a 40% ACoS is not.

That comparison gives your break-even ACoS. Watch for: ACoS targets copied from other sellers, because the right number depends entirely on your own margins.

Example

$3,000 of ad spend that drives $10,000 of attributed sales is a 30% ACoS, which equals a 3.33 ROAS.

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