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Glossary · Metrics

What is ACoS?

Also known as Advertising cost of sale.

Definition

ACoS (advertising cost of sale) is ad spend divided by attributed sales, expressed as a percentage. It is the standard efficiency metric on Amazon Ads and is the inverse of ROAS: an ACoS of 25% is the same as a 4x ROAS. Lower ACoS means more efficient spend.

How it is calculated

ACoS = (Ad spend ÷ Attributed sales) × 100

What to know

Break-even ACoS equals your profit margin before advertising. If you keep 35% after all costs, an ACoS above 35% is losing money on that sale.

ACoS counts only ad-attributed sales. TACoS (total advertising cost of sale) compares ad spend against total sales including organic, which is the better measure of whether advertising is growing the business rather than cannibalising organic orders.

Related terms

TACoSTACoS (total advertising cost of sale) is ad spend divided by total revenue including organic sales, expressed...ROASROAS (return on ad spend) is the revenue generated by advertising divided by the amount spent on it. A campaig...Break-even ROASBreak-even ROAS is the return on ad spend at which a campaign covers its costs exactly, calculated as 1 divide...

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