ACoS(ACoS)
Advertising
Advertising
ACoS (Advertising Cost of Sale) is ad spend divided by the revenue those ads generate, as a percentage.
ACoS mirrors ROAS: 25% ACoS equals a ROAS of 4. The term comes from marketplace advertising (Amazon, bol) and is the standard there.
Set your break-even ACoS using gross margin. At 40% margin, 40% ACoS is your break-even — above that you lose money, unless you are deliberately buying new customers.
Tip
Read ACoS alongside your organic sales. If those rise too, the campaign is doing its job even when ACoS looks high on its own.
Related terms
- TACoSTACoS is ad spend divided by total revenue — including sales that happened without ads.
- ROASROAS is revenue generated by your ads divided by what you spend on them. A ROAS of 4 means €4 revenue per euro spent.
- CPACPA is ad cost per conversion: total spend divided by conversions, such as enquiries or purchases.
- MarginMargin is what's left of a sale after direct costs. It's the number that decides how much you may spend on marketing.