What is ACoS?

ACoS (Advertising Cost of Sale) is the primary metric Amazon sellers use to measure the efficiency of their PPC advertising campaigns.

How ACoS Works

ACoS tells you what percentage of your ad-attributed revenue you spent on advertising. A lower ACoS means higher efficiency.

The Formula

ACoS = (Ad Spend ÷ Ad Revenue) × 100

Example

If you spend $100 on ads and generate $500 in ad revenue:

• ACoS = ($100 ÷ $500) × 100 = 20%
• This means 20 cents of every dollar earned from ads went to advertising costs

What's a Good ACoS?

Important: Your target ACoS should be based on your profit margins. If your product has 40% margins, a 35% ACoS might be acceptable. If margins are 20%, a 15% ACoS is necessary to stay profitable.

ACoS vs TACoS

While ACoS only measures ad-attributed revenue, TACoS (Total Advertising Cost of Sale) measures ad spend against your total revenue (organic + advertising). TACoS provides a more complete picture of advertising impact on your business.

How to Lower ACoS

1. Add negative keywords - Stop paying for irrelevant searches
2. Optimize product listings - Better listings convert more, lowering ACoS
3. Adjust bids strategically - Lower bids on underperforming keywords
4. Focus budget on winners - Shift spend to high-converting keywords
5. Use automated optimization - Tools like Shurq optimize bids 24/7