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What Is ACoS? Meaning, Formula and Examples

Ad spend divided by ad-attributed sales on marketplaces.

Definition

Ad spend divided by ad-attributed sales on marketplaces.

Why it matters

It measures marketplace ad efficiency.

How it works

ACoS = ad spend ÷ ad sales × 100

Example

₹10,000 spend for ₹50,000 sales is 20%.

Common mistake

Ignoring organic impact.

Using it in practice

Review ACoS alongside related metrics rather than in isolation, and agree definitions across your team so reports stay consistent.

Need help putting this into practice?

Gravmo's team can plan and run this for you. See Amazon Store Setup and Marketing or message us on WhatsApp.

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Frequently asked questions

Is ACoS the most important metric?

No single metric tells the whole story; use it with business outcomes.

How often should we review ACoS?

Monthly for most businesses, weekly during active campaigns.

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