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This article applies to selling in: United States

Advertising Cost of Sales (ACoS)

Advertising cost of sales (ACoS) is the percentage of direct sales you made from Sponsored Products ads, or the overall brand sales you made from Sponsored Brands that resulted from your advertising campaign. This is calculated by dividing total ad spend by total sales from advertising.

ACoS = total ad spend ÷ total ad sales x 100

For example, if you spent $2 on advertising and those ads resulted in sales of $20, your ACoS would be 10%.

How to use ACoS

ACoS helps you measure the effectiveness of your campaigns relative to your advertising spend. A lower ACoS means you’re spending a lower percentage of sales on advertising.

For Sponsored Products campaigns, your total sales consist of product sales generated within one week of clicks on your ads. This total includes both sales of the advertised SKU as well as sales of the other SKUs in your inventory. For example, if a click on your ad for a blue shirt generates a sale for one of your red shirts, this is included in total sales.

For Sponsored Brands, total sales consist of the product sales generated by ad clicks in two weeks. This total includes sales of the advertised products as well as sales of other products within the same brand that resulted from clicks on your ads, regardless of whether they were or sold by you or by others. Learn more about brand sales

For example, let’s say you have a brand that sells athletic equipment. You may find that your Sponsored Brand for your new running shoe collection has also generated sales for your socks and workout clothing that was sold by other advertisers.

Note: For Sponsored Products campaigns, your sales data can take up to 48 hours to populate. For Sponsored Brands, brand sales data can take up to 12 hours to populate. As a result, ACoS is not available in the “Today” date range and might be delayed in the “Yesterday” date range.

ACoS recommendations by campaign targeting type

To minimize your spend on advertising, you’ll want to lower your ACoS. If your goal is to increase exposure of a new or existing SKU, you might be okay with a higher ACoS for a set period of time.

Targeting Type Low-Performing Campaigns Top-Performing Campaigns
Manual targeting
  • Consider lowering bids or pausing specific keywords that have a high ACoS.
  • Consider adding more keywords to see if they can improve campaign performance.
  • Consider increasing your campaign budget.
  • Review your list of keywords and identify the top performers. Increasing your bid on top performing keywords may generate additional impressions, clicks, and sales.
Automatic targeting
  • Consider adding negative keywords for search terms that have a high ACoS. You can see search terms by ACoS in the Search Term Report.
  • Consider lowering your default bid for the entire campaign.
  • Consider increasing your campaign budget.
  • Consider increasing your default bids to generate additional impressions, clicks, and sales.
Note: Automatic targeting is only available for Sponsored Products campaigns.
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