Amazon Advertising reports performance in ACoS rather than ROAS. An ACoS of 25% is the same as a ROAS of 4. Lower is better.
Your break-even ACoS equals your margin before advertising: if you keep 35% of each sale before ads, any ACoS above 35% loses money on attributed sales.
Formula
ACoS = Ad spend ÷ Ad-attributed sales × 100 = 100 ÷ ROAS
Example
₹50,000 of spend driving ₹2,00,000 of attributed sales is an ACoS of 25%.
Convert between ROAS and ACoS instantly, calculate TACoS and MER, and see the break-even point for your margin.
Related terms
- ROAS (return on ad spend)ROAS is the revenue attributed to advertising divided by the cost of that advertising.
- TACoS (total advertising cost of sale)TACoS is ad spend divided by total sales, including organic sales, expressed as a percentage.
- Break-even ROASBreak-even ROAS is the return on ad spend at which an order covers its variable costs and its acquisition cost, leaving zero profit.
Part of the growth marketing glossary by Shiva Sharma.