This story is available exclusively to Business Insider subscribers.Amazon made a metric called "return on ad spend," or ROAS, available on its ad service for sponsored ads this month.
or ACOS, instead, to measure the effectiveness of their ads. ACOS is calculated by dividing the advertising spend by total sales generated — or by simply flipping ROAS. For example, if you spend $10 on an ad campaign that generates $200 in revenue, the ACOS is 5%. Amazon's spokesperson confirmed the change in an email to Business Insider, saying the update was recently made across its sponsored ads service, or the ads that show up next to search results on Amazon.
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