What is ACoS?

Advertising Cost of Sale (ACoS) is the ratio of ad spend to ad-generated sales, shown as a percentage. Formula: (Ad Spend ÷ Ad Sales) × 100. Lower ACoS means more efficient advertising.

Why ACoS Is Critical for PPC Success

• Helps determine if campaigns are profitable
• Guides bid adjustments and keyword selection
• Target ACoS varies by margin (e.g., aim below 20–30% for healthy profit)
• Impacts overall account profitability and scaling
• Directly tied to ROI of your advertising budget

How to Optimize ACoS

• Focus on high-converting, relevant keywords
• Use negative keywords to eliminate wasted spend
• Adjust bids based on performance (increase for winners, decrease for losers)
• Leverage automatic targeting for discovery, manual for control
• Monitor placement reports (search vs product pages)

Best Practices for ACoS Management

• Set target ACoS based on your profit margins
• Track ACoS daily/weekly and act quickly on spikes
• Use bulk operations for large-scale bid changes
• Combine with organic ranking efforts for long-term savings
• Test new campaigns with conservative budgets

Monitoring ACoS & Campaign Changes

ACoS can fluctuate from bid changes, competition, or listing updates. Real-time tracking helps maintain profitability.