ACoS – Advertising Cost of Sale

What is ACoS (Advertising Cost of Sale) and how does it impact digital advertising strategies?

A metric used primarily in online advertising to measure the effectiveness of a paid ad campaign. It represents the ratio of ad spend to targeted sales and is calculated as (Ad Spend / Sales from Ad) × 100. The resulting percentage tells advertisers how much they've spent on advertising for every dollar of sale generated from the ad. For example, if you spent $50 on ads and those ads resulted in $100 of sales, the ACoS would be 50%. In the context of sneaker reselling, if a reseller uses online platforms or social media advertising to promote rare or popular sneakers, they would use ACoS to determine how effective those ads are at driving sales. A lower ACoS indicates a more cost-effective ad campaign, meaning the advertiser is spending less for each sale made. Conversely, a higher ACoS might suggest the ads aren't as effective or the cost is too high for the sales they're generating. Resellers, especially those operating online stores, can use this metric to adjust their advertising strategies, ensuring they get the best return on their ad spend while promoting their sneaker inventory to potential buyers.