Total ACOS (Advertising Cost of Sales) is a metric used by Amazon sellers to evaluate the effectiveness and profitability of their paid advertising campaigns relative to their organic sales. This measure gives sellers an idea of the proportion of their sales that is going towards advertising.
To calculate Total ACOS, you need to take your total ad spend and divide it by your total sales revenue. This figure is usually expressed as a percentage. The lower the ACOS, the higher the return on ad spend (ROAS), which is generally favorable for sellers.
It should be known that this is not an official Amazon metric and is typically calculated differently by different companies.
In September 2022, Ad Badger released its Product Dashboard which does the following:
- Calculates how much ad spend, ad clicks, and ad revenue for your Sponsored Products & Sponsored Display campaigns per product.
- Then, we grab your ASIN's total sales using the SP-API. This link is currently only available to Amazon Sellers, not Vendors.
- We can then calculate your organic sales & Total ACOS.
Other common questions:
Why don't I see Total ACOS Per Keyword: You cannot have a Total ACOS per keyword because Total ACOS is a per-product, not a per-keyword metric. For example, you may a keyword that advertises 10 different products, and you cannot determine which product-keyword combination earned organic sales. By keeping the Total ACOS values in our Product Dashboard, you can identify your high Total ACOS products, and begin to optimize your keywords using this information. Here is a good rule of thumb:
1. Your products have a Total ACOS, and you can use this information to set individual keyword target ACOS.