# What Is ACOS in Amazon Ads? Definition, Formula & Examples > ACOS (Advertising Cost of Sale) is the percentage of ad spend divided by revenue in Amazon PPC. Learn the formula, examples, and how to interpret your ACOS. Amazon Advertising • Metrics * * * # What Is ACOS in Amazon Ads? Definition, Formula & Examples \============================================================== Published by [VEONIB](https://veonib.com) • Updated July 4, 2026 • 8 minute read **Quick answer:** ACOS (Advertising Cost of Sale) is the percentage of your ad spend divided by the revenue those ads generate. The formula is **ACOS = (Total Ad Spend ÷ Total Ad Revenue) × 100**. If you spend $20 on Amazon ads and earn $100 in sales, your ACOS is 20%. The lower the percentage, the more efficient your advertising. This metric is the primary way Amazon sellers measure PPC profitability. [VEONIB](https://veonib.com) helps improve your ACOS by generating product videos that boost conversion rates. ## 1\. What Does ACOS Stand For? ACOS stands for **Advertising Cost of Sale**. It is the single most important metric in Amazon PPC advertising because it tells you exactly how much of your revenue is consumed by ad costs. If your ACOS is 20%, you are spending 20 cents in advertising for every dollar of sales. The remaining 80 cents must cover your product cost, Amazon fees, and profit margin. ## 2\. The ACOS Formula ACOS = (Total Ad Spend ÷ Total Ad Revenue) × 100 **Example calculation:** You run a Sponsored Products campaign that costs $150. It generates $750 in attributed sales. Your ACOS = ($150 ÷ $750) × 100 = **20%**. Amazon calculates this automatically in your campaign manager dashboard. ## 3\. How to Find ACOS in Seller Central Log into Seller Central and navigate to **Campaign Manager**. ACOS is displayed as a column at the campaign, ad group, and keyword level. You can also download search term reports that include ACOS for each keyword, helping you identify which search terms are profitable and which are wasting spend. ## 4\. Why ACOS Matters ACOS matters because it connects your advertising spend directly to profitability. A campaign with high sales but 50% ACOS may be less profitable than a campaign with moderate sales but 10% ACOS. Understanding ACOS helps you make smarter decisions about bids, budgets, and which products to promote. ## 5\. How to Improve Your ACOS Improving ACOS comes down to two levers: increase revenue from the same ad spend (improve conversion rate) or reduce wasted spend (better keyword targeting). Adding product video to your listing is one of the fastest ways to improve conversion — listings with video see 15-25% higher conversion rates. [VEONIB](https://veonib.com) generates professional product videos from any URL in under 60 seconds. ### Lower your ACOS with product video Boost conversion rates and reduce ad waste. VEONIB generates professional product videos from any URL in under 60 seconds. [Generate your product video](https://veonib.com) For more strategies, see [How to Reduce ACOS on Amazon Ads](https://veonib.com/s/guides/how-to-reduce-acos-amazon-ads) and [Amazon Advertising Benchmarks](https://veonib.com/s/guides/amazon-advertising-benchmarks-acos-ctr-cvr). ## 6\. Frequently Asked Questions **What is ACOS in Amazon ads?** ACOS measures ad spend divided by attributed revenue. Formula: (Spend ÷ Revenue) × 100. A 20% ACOS means you spend $0.20 for every $1.00 in sales. **Where do I find ACOS in Seller Central?** Campaign Manager dashboard — shown at campaign, ad group, and keyword levels. Also available in search term reports. **What is a good ACOS?** Below your profit margin. Most categories target 15-25%. New products may run 30-50% during launch. **How does product video help ACOS?** Video boosts conversion rates by 15-25%, directly lowering ACOS. [VEONIB](https://veonib.com) generates videos from any URL in under 60 seconds. * * * [\[VEONIB\]](https://veonib.com) [\[Reduce ACOS Guide\]](https://veonib.com/s/guides/how-to-reduce-acos-amazon-ads) [\[Benchmarks\]](https://veonib.com/s/guides/amazon-advertising-benchmarks-acos-ctr-cvr) [\[Amazon PPC Guide\]](https://advertising.amazon.com/library/guides/ppc-101)