ACoS
Advertising Cost of Sale - A key PPC metric calculated as (Ad Spend / Ad Revenue) × 100. For example, if you spend $20 on ads and generate $100 in ad-attributed sales, your ACoS is 20%. Lower ACoS generally indicates more efficient advertising.
Related Terms
TACoS
Total Advertising Cost of Sale - A metric that measures ad spend as a percentage of total revenue (not just ad-attributed revenue). TACoS = (Ad Spend / Total Revenue) × 100. It provides a more holistic view of advertising efficiency and organic sales growth.
ROAS
Return on Ad Spend - A metric measuring the revenue generated for every dollar spent on advertising. ROAS = (Ad Revenue / Ad Spend). A ROAS of 4 means you earn $4 for every $1 spent. It's the inverse of ACoS.
PPC
Pay-Per-Click - Amazon's advertising model where sellers pay only when a shopper clicks on their ad. Amazon PPC includes Sponsored Products, Sponsored Brands, and Sponsored Display ads. It's essential for product visibility and launching new products.