Work out your ACOS (advertising cost of sales), the equivalent ROAS, and whether you’re above or below your break-even ACOS.
Get a free PPC auditACOS = Ad spend ÷ Sales × 100. It’s the inverse of ROAS (ACOS 25% = ROAS 4.0). Common on Amazon and Shopping. Your break-even ACOS equals your profit margin.
If your margin is 30%, any ACOS under 30% is profitable. Lower isn’t always better if a higher ACOS is still profitable and drives volume.
Divide ad spend by the sales those ads generated and multiply by 100.
Anything below your profit margin. Margin 30% → keep ACOS under 30% to profit.
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