Amazon Adjusted Click-Through Rate: Effective Strategies and Numbers – A PPC Roadmap for 2023

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Advertising’s efficacy as a revenue generator is almost universally acknowledged. Ads may be costly, so it’s important to make sure you’re getting a good return on investment. Knowing how effective your advertisements are as an Amazon seller is essential to growing your company. The Advertising Cost of Sales is an essential indicator of the efficiency of your advertising initiatives. To assist you accomplish your advertising objectives on Amazon, we will discuss in further detail what ACOS is, how it is calculated, and how to improve your ACOS in this article.

As an Amazon vendor, you want to lower your advertising cost per sale (ACoS). It seems to be the reason that a lower ACoS indicates more profitability. This article outlines five tried-and-true techniques for reducing ACoS Amazon without compromising ad quality. 

Amazon’s advertising cost of sale is abbreviated ACoS. A ratio of advertising expenditures to sales income is calculated for Amazon merchants. It’s a metric used to calculate how successful an Amazon PPC campaign was.

In this article, we will go over everything you need to know to improve your PPC campaigns and bring down your ACoS.

  • Explain Amazon’s ACOS.
  • How Do I Determine ACOS?
  • What Constitutes an Effective ACOS?
  • Just how crucial is Amazon’s ACoS?
  • How Do I Figure Out My Amazon ACoS Breakeven Point?
  • The Formula for Determining the Ideal ACOS.
  • What Can You Do to Boost Your ACOS?
  • Conclusion

Explain Amazon’s ACOS.

Amazon ACOS, which stands for Advertising Cost of Sales, is a statistic for gauging the success of ads on the platform. The advertising cost-effectiveness ratio (ACOS) measures how much money may be made via advertising.

The Average Click-Through Rate (ACOS) is an essential measure for Amazon vendors that utilize promoted adverts to market their wares. By keeping an eye on ACOS, retailers may assess the success of their marketing efforts and fine-tune their budgets accordingly to achieve maximum return on investment (ROI). It aids in allocating advertising funds, determining whether advertising campaigns are successful, and adjusting advertising approaches.

How Do I Determine ACOS?

The advertising cost effectiveness ratio (ACOS) is the proportion of advertising sales that were spent on advertising.ACOS, or “Average Cost of Sales,” is a metric used by Amazon sellers to determine how much they must invest in marketing before they see a return on their investment. For instance, if a company’s advertising cost-effectiveness ratio (ACOS) is 20%, it indicates that for every $1 spent on ads, $5 are brought in.

What Constitutes an Effective ACOS?

In most cases, you want to spend less on advertising than you bring in, therefore a lower ACOS is preferable. Amazon merchants often get an ACOS of 30%. You may go for an ACOS of about 15-20% overall.

However, the best ACOS for your company will rely on variables including your profit margins, the level of competition in your market, and your advertising objectives. If your company has a strong profit margin and places a premium on brand recognition, you could be ready to pay a higher ACOS in exchange for access to a wider audience. On the other side, if your profit margins are narrower and you’re trying to boost sales as much as possible, you can try to achieve a lower ACOS.

Just how crucial is Amazon’s ACoS?

For the reason that it reveals the proportion of sales to advertising costs. Having a low ACoS is preferred, since it indicates a positive return on investment from the advertising campaign. However, the optimal ACoS will change based on the specifics of your firm and its profit margin.

How Do I Figure Out My Amazon ACoS Breakeven Point?

When your advertising costs are equal to your revenue, this is known as the “break-even ACOS.” You have reached the break-even point if your ACOS is higher than your profit margin before advertising. If the cost of sales is greater than the profit margin, advertising will be a loss. When ACOS is less than profit margin, advertising starts making money.

The Formula for Determining the Ideal ACOS.

The expected advertising cost as a proportion of sales goal. Target ACOS is determined by taking the pre-advertising profit margin and subtracting it from the post-advertising profit margin.

Depending on your marketing and commercial objectives, your Target ACOS might be set differently. If you’re trying to get the word out about a new product, for instance, you can aim for a higher Target ACOS. On the other hand, a lower Target ACOS might be preferable if maximising earnings is a priority.

What Can You Do to Boost Your ACOS?

The success of your advertising initiatives depends on getting in front of your Target ACOS. Several options for doing so are provided below.

Improve your keyword optimization

Make sure the names, descriptions, and internal search terms you use for your products include relevant keywords. Increased CTRs and sales will come from your items’ increased visibility in relevant search results.

Find the best possible bid

Always double-check your bids to make sure you aren’t wasting money on irrelevant or unprofitable keywords.

Revamp your product descriptions.

Listings for your products should be well-written and interesting to read. To set yourself apart from the competition and show the value of your items, use high-quality photos, in-depth descriptions, and customer reviews.

Maintain a close eye on your various efforts.

Keep a close eye on your campaigns so you can tweak the ones that need it. Determine which keywords, advertisements, and targeting tactics are most effective by analyzing your campaign data and adjusting your efforts appropriately.

Use adversative language

To avoid clicking on non-converting search phrases and save money, use “negative keywords.”

Think about a variety of ad types

Try out several ad types like Sponsored Products, Sponsored Brands, and Sponsored Display to see what brings in the most customers and sells the most of your wares.

Try out various tactics

Experiment with various bidding tactics, targeting choices, and ad copy to see what works best for your company.


For Amazon sellers, ACOS is a crucial indicator for monitoring the success of their advertising efforts and making adjustments as needed. The success of your advertising campaigns has a direct impact on your sales, thus allocating your budget for advertising wisely is essential for maximising your return on investment.

A good ACoS amazon, therefore, is… The correct response varies from company to company. What constitutes a “good” ACoS for your Amazon advertising relies on your specific objectives. Do you want to increase your sales with the help of Amazon ads? Is maximising profits a higher priority, instead?

With our no-cost PPC analysis, we can get you where you want to go. SAECOM FBA PRO will analyse your account and help you realise your campaigns’ full potential. Make the first step now and get in touch with us.


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