ACOS stands for "Advertising Cost of Sales". ACOS is a metric used to measure the efficiency and effectiveness of advertising campaigns on Amazon's platform. It represents the ratio of advertising spend to the attributed sales generated from those advertisements. In other words, ACOS helps sellers and advertisers understand how much they are spending on advertising in order to generate a certain amount of sales revenue.
The formula for calculating ACOS is as follows:
ACOS = (Advertising Spend / Attributed Sales) * 100
- Advertising Spend: The total amount of money spent on Amazon advertising campaigns.
- Attributed Sales: The sales revenue generated from those advertising campaigns.
ACOS is expressed as a percentage. A lower ACOS indicates that an advertising campaign is more cost-efficient, as it means a relatively lower amount of money is being spent on advertising to generate a certain level of sales. Conversely, a higher ACOS indicates that a higher proportion of advertising spend is needed to generate the attributed sales.
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