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ACoS

Advertising cost of sale — what share of the revenue advertising eats up.

How it works

The same thing as ROAS, only from the other side: where ROAS answers “how much came back”, ACoS answers “how much went out”. Handier when you count in percentages of revenue.

Formula

Spend ÷ revenue × 100%

Example

The same shop: spend 40,000, revenue 180,000.

ACoS = 40,000 ÷ 180,000 × 100% = 22%. Advertising eats a little over a fifth of the revenue.