How is advertising cost of sales (ACOS) calculated?
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Correct answer: ad spend / attributed sales.
Why this is the answer
ACOS (Advertising Cost of Sales) is a key metric for understanding the efficiency of your ad campaigns. It is calculated by dividing your total ad spend by the total attributed sales generated from those ads. This ratio shows how much you spent on advertising for every dollar of sales you made. For example, an ACOS of 20% means you spent $0.20 to generate $1.00 in sales. The other options are incorrect because multiplying ad spend by clicks or attributed sales, or dividing ad spend by clicks, does not yield a meaningful ratio of advertising cost to sales revenue.
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