The Amazon Ecosystem and Terminology
Transcription
Advertising cost of sales or a cost. It’s the percentage of direct sales you made from sponsored product 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. That is ACOS is equal to total ad spend divided by total ad sales multiplied by a hundred.
show moreFor example, if you spend $2 on advertising and those ads resulted in sales of $20, your aid costs would be 10%. ACOS helps you measure the effectiveness of your campaigns relative to your advertising spent. A lower ACOS means you’re spending a lower percentage of sales on advertising 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 ASEN, you might be okay with a higher ACOS for a set period of time. The higher your ACOS, the higher ratio add cost to sales revenue, the lower your ACOS, the lower your ratio of ad costs to sales before.
Ideally you want as high a sales revenue figure as possible with as low of ACOS as possible.