ACoS (Advertising Cost of Sales)
The percentage of ad spend relative to the revenue generated by those ads. Calculated as (Ad Spend ÷ Ad Revenue) × 100.
What Is ACoS?
ACoS stands for Advertising Cost of Sales. It measures how much you spend on advertising for every dollar of ad-attributed revenue. An ACoS of 25% means you spent $0.25 on ads for every $1 of ad revenue.
How to Calculate ACoS
The formula is straightforward:
ACoS = (Total Ad Spend ÷ Total Ad Revenue) × 100
For example, if you spent $500 on PPC and generated $2,000 in ad-attributed sales, your ACoS is 25%.
What Is a Good ACoS?
There is no universal "good" ACoS - it depends on your profit margins. If your pre-ad profit margin is 30%, then any ACoS below 30% means your ads are profitable. Most established brands target an ACoS between 15% and 25%.
ACoS vs TACoS
ACoS only measures ad-attributed sales. TACoS (Total Advertising Cost of Sales) measures ad spend against your total revenue, including organic sales. TACoS gives a more complete picture of how ads impact your overall business.
How SellerLegend Helps
SellerLegend's PPC analytics dashboard tracks ACoS across all campaign types - Sponsored Products, Brands, and Display - with near real-time data updates, so you can react to performance changes the same day.
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