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what is Advertising Cost of Sale?

Here’s the brief summary of what ACoS means:ACoS (Advertising Cost of Sale) is a key metric to measure the performance of an Amazon PPC campaign. It is the ratio of Amazon Sponsored Products ad spend to ad revenue, expressed as a percentage. You can calculate Advertising Cost of Sale using this formula:

ACoS = Ad Spend ÷ Ad Revenue * 100

In short, ACoS shows how much of every dollar earned with advertising was spent on the ad campaign. Have a look at the example below:

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wHAT IS A GOOD ACOS?

There is no one good ACoS that will guarantee a profitable efficiency for your ad campaign. Many variables come together to shape the ACoS that is best for you. Your strategic advertising goals, PPC metrics, and the cost structure of your product all play a role. You won’t get around rolling up your sleeves and getting your hands dirty. But don’t worry — we’ll help you get stuck in.

 

Average ACoS
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