ACoS stands for Advertising Cost of Sale. It is your advertising costs divided by your sales. In other words: the percentage of your turnover you want to spend on sponsored products. Say you spend 100 euros on sponsored products and this generates 1000 euros in sales. Your ACoS is now 10 per cent.
What is a good ACoS depends on your own profit margins. Suppose your profit margin is 20 per cent, this means that your ACoS should at least be lower than 20 per cent to advertise profitably.
Frequently Asked Questions
Why am I getting a poor ACoS?
There may be several reasons for a poor ACoS:
– Competition in the category is high
– Bid prices are high
– The article does not generate enough sales
What can I do if I get a poor ACoS?
– Exclude keywords or URLs that trigger advertisements for articles that are not relevant
– The results of your campaign often improve when you advertise articles that have less competition or have a clear advantage over the competition. Such as good reviews, special specifications or a competitive price. Therefore, compare your article with that of the competitor on these three points. Do your competitors have, for example, a more competitive price, more/higher reviews and/or better specifications? Then see if you can change anything. Is this impossible? Then remove the articles from the campaign.