{"id":8491,"date":"2025-05-22T13:29:26","date_gmt":"2025-05-22T13:29:26","guid":{"rendered":"https:\/\/www.sellerapp.com\/help\/?post_type=docs&#038;p=8491"},"modified":"2025-05-23T05:57:00","modified_gmt":"2025-05-23T05:57:00","slug":"target-acos","status":"publish","type":"docs","link":"https:\/\/www.sellerapp.com\/help\/article\/target-acos\/","title":{"rendered":"What is Target ACoS?"},"content":{"rendered":"<p><b>Target ACoS<\/b><span style=\"font-weight: 400;\"> (Target Advertising Cost of Sale) not to be confused with TACoS (Total Advertising Cost of Sale) is the <\/span><b>desired threshold<\/b><span style=\"font-weight: 400;\"> that a seller sets for how much they\u2019re willing to spend on advertising to generate a certain amount of sales. It\u2019s expressed as a percentage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In simpler terms:<\/span><\/p>\n<p><b>Target ACoS = (Ad Spend \u00f7 Sales Revenue) x 100% (your goal)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">It helps sellers <\/span><b>balance profitability with growth<\/b><span style=\"font-weight: 400;\">. Setting a clear Target ACoS lets you know if your advertising campaigns are performing according to your business objectives.<\/span><\/p>\n<p><b>Why is Target ACoS Important?<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Guides Campaign Strategy<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Helps determine which keywords, products, and ad types are worth scaling.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Protects Profit Margins<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Prevents overspending on ads by setting a ceiling for acceptable ad spend.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Helps Automate Campaign Optimization<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Tools like SellerApp use your Target ACoS to adjust bids and budgets dynamically.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><b>For Example<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If your product sells for <\/span><b>$50<\/b><span style=\"font-weight: 400;\">, and your cost (including product, FBA fees, etc.) is <\/span><b>$35<\/b><span style=\"font-weight: 400;\">, your profit before ads is <\/span><b>$15<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To break even on ads:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Target ACoS = $15 profit \/ $50 sale price = <\/span><b>30%<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If you want to keep a <\/span><b>$5<\/b><span style=\"font-weight: 400;\"> profit after ads:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Target ACoS = $10 ad spend \/ $50 sale = <\/span><b>20%<\/b><\/p>\n<p><span style=\"font-weight: 400;\">So in this case, a <\/span><b>Target ACoS of 20%<\/b><span style=\"font-weight: 400;\"> ensures profitability.<\/span><\/p>\n<p><b>How to Set Your Target ACoS<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calculate your product cost and profit margin.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decide how much margin you&#8217;re willing to spend on ads.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use that number as your <\/span><b>Target ACoS<\/b><span style=\"font-weight: 400;\"> to guide campaign decisions.<\/span><\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8500\" src=\"https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image35.png\" alt=\"Target ACos\" width=\"1999\" height=\"1089\" srcset=\"https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image35.png 1999w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image35-300x163.png 300w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image35-1024x558.png 1024w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image35-768x418.png 768w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image35-1536x837.png 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8501\" src=\"https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image59.png\" alt=\"Set Your Target ACoS \" width=\"1999\" height=\"1006\" srcset=\"https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image59.png 1999w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image59-300x151.png 300w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image59-1024x515.png 1024w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image59-768x386.png 768w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image59-1536x773.png 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8502\" src=\"https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image21.png\" alt=\"Compare actual ACoS to your Target ACoS\" width=\"1999\" height=\"903\" srcset=\"https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image21.png 1999w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image21-300x136.png 300w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image21-1024x463.png 1024w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image21-768x347.png 768w, https:\/\/www.sellerapp.com\/help\/wp-content\/uploads\/2025\/05\/image21-1536x694.png 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/p>\n<p><b>Related Tools in SellerApp<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.sellerapp.com\/amazon-ppc-analyzer.html\"><b>PPC Analyzer<\/b><\/a><span style=\"font-weight: 400;\"> \u2013 Compare actual ACoS to your Target ACoS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bid Automation<\/b><span style=\"font-weight: 400;\"> \u2013 Set campaigns to auto-adjust based on Target ACoS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.sellerapp.com\/profit-dashboard.html\"><b>Profit Dashboard<\/b><\/a> \u2013 Measure true profitability, including ad spend.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Target ACoS (Target Advertising Cost of Sale) not to be confused with TACoS (Total Advertising Cost of Sale) is the desired threshold that a seller sets for how much they\u2019re willing to spend on advertising to generate a certain amount of sales. It\u2019s expressed as a percentage. In simpler terms: Target ACoS = (Ad Spend [&hellip;]<\/p>\n","protected":false},"author":1982,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","doc_tag":[],"doc_category":[300],"class_list":["post-8491","docs","type-docs","status-publish","hentry","doc_category-advertising","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/docs\/8491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/users\/1982"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/comments?post=8491"}],"version-history":[{"count":4,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/docs\/8491\/revisions"}],"predecessor-version":[{"id":8504,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/docs\/8491\/revisions\/8504"}],"wp:attachment":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/media?parent=8491"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/doc_tag?post=8491"},{"taxonomy":"doc_category","embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/doc_category?post=8491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}