ACOS is a metric used in advertising, particularly in eCommerce, to measure the efficiency of advertising campaigns on platforms like Amazon.
It is the ratio of advertising spend to sales revenue generated from those ads, in %.
For example, if the total revenue that you earned through an ad campaign is INR 87,000, while the total cost that you incurred in running that campaign is INR 5500. Your ACOS can be calculated as 5500/87000 = 0.063. Hence, for every rupee you earn, you spend INR 0.063.
A lower ACOS indicates more efficient ad spend, while a higher ACOS suggests that advertising costs are eating into profits.