Advertising cost of sales, usually ACoS, expresses ad spend as a percentage of revenue attributed to those ads under the selected attribution rules. It is calculated as ad spend divided by ad revenue, multiplied by one hundred.[1] It is neither a percentage of all store revenue nor a profit margin.
In a hypothetical example, €200 of advertising spend and €1,000 of attributed revenue produce an ACoS of 20%. Assess that against the margin available before advertising. Keep attribution windows, revenue treatment and returns consistent when comparing periods. With no attributed revenue, the ratio cannot meaningfully be calculated; a missing report is not an ACoS of zero.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.