What is ACoS? ACoS Review

formula

ACoS = ad spend / sales revenue

Spend is the cost of a single click, Sales is the average order value and number of orders. The smaller the ACoS value, the better the benefit of advertising investment.

Example

Product A Campaign

Revenue per unit: $50

· Spend: $10 ÷ Units sold 2 = CPA: $5

· Spend: $10 ÷ Sales Revenue $100 = ACoS: 10%

In other words: you spent $1 on advertising and got $10 in sales.

Product B Campaign

Revenue per unit: $10

· Spend: $10 ÷ Units sold 2 = CPA: $5

· Spend: $10 ÷ Sales Revenue $20 = ACoS: 50%

In other words: you spent $1 on advertising and got $2 in sales.

Delivery suggestions

References

• 1. ACOS placement recommendations: Amazon official website [cited on 2019-01-29]