Paid Ads
ACOS (Advertising Cost of Sale)
The percentage of revenue spent on advertising, the inverse of ROAS.
Definition
ACOS expresses ad spend as a percentage of the revenue it produced. It's popular on marketplaces like Amazon and Noon. A lower ACOS means more efficient spend.
Formula
ACOS = (Ad spend ÷ Revenue from ads) × 100
Example
AED 2,000 of spend producing AED 8,000 of sales is a 25% ACOS, which is the same efficiency as a 4x ROAS.