Essentially, ACoS stands for advertising cost per sale or the cost of reaching a customer and selling to them. The formula itself is fairly straightforward, but there are a few ways you can calculate it.

As you can see, the equation looks like this:

The ACoS shows how much of every dollar earned through advertising was spent on ads. Consider the case of a campaign that generated $400 in advertising sales. This campaign costs $100 in ads, so ACoS = 100 / 400 x 100 = 25%. As a result, 25 cents have been spent on advertising for every dollar generated.

There are many variables that affect ACoS, including the marketplace, the ad type, the competition, the product price, and many others. Below is a general overview of ACoS values on Amazon across different categories.

There is a common misconception that the highest bidder always gets the best spot - but that isn't always true. While cost-per-click plays an important role, it is not the only one. The following two factors determine ad placement: – CPC: A person with a high CPC is more likely to win prime advertising space on Amazon. Quality: The quality of the ad also depends on the probability of a customer clicking on it.