PNO

What does it mean

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How to calculate ACoS?

ACoS = (advertising costs / campaign turnover) * 100

Example:

If you have a campaign with a turnover of €10,000 and advertising costs of €1,500, your ACoS will be 15%.

A lower ACoS is generally better because it means you spent less money on advertising and achieved a higher turnover. However, the optimal ACoS varies depending on your business goals and margins.

ACoS can be used to:

  • Compare the efficiency of different advertising campaigns
  • Track the development of campaign efficiency over time
  • Optimize campaigns to achieve maximum ROI (return on investment)

Types of ACoS

ACoS can be divided into various types:

  • ACoS for keywords: Measures the efficiency of individual keywords in a campaign.
  • ACoS for campaigns: Measures the efficiency of the entire campaign.
  • ACoS for channels: Measures the efficiency of different advertising channels (e.g., Google Ads, Facebook Ads).

Using ACoS

ACoS can be used to optimize campaigns:

  • Identifying inefficient keywords
  • Reducing cost per click (CPC)
  • Increasing conversion ratio

ACoS is an important metric for e-shops and all companies that invest in online advertising. It helps them measure the efficiency of campaigns and optimize them to achieve maximum profit.

Tips for reducing ACoS

  • Focus on a relevant audience
  • Optimize texts and landing pages
  • Test different advertising formats
  • Use automation

It is important to note that ACoS is not the only metric you should track when evaluating the efficiency of advertising campaigns. Other metrics such as conversion ratio, click-through rate (CTR), and return on investment (ROI) are also important.

Need to optimize your advertising costs? Contact us.

    In addition to ACoS, we can also help you with:

    • Setting up and optimizing advertising campaigns
    • Data analysis and reporting
    • Creating a marketing strategy
    • And many other services

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