Which Target ACoS should I set?
The advertising cost of sales (ACoS) is calculated by dividing total spend by the attributed sales.
It is important to set realistic TACoS values for all your campaigns. In order to determine it, you could:
- Check the actual ACoS values of your previous campaigns as an indication and ad at least 5 percentage points to these amounts
- If those are not available, we recommend starting with at least 15% - 20%
TACoS values can be adjusted at any time. We recommend rather starting with TACoS values above your real targets in order to give our algorithm room for development and optimization and decrease them after 4-6 weeks.
Of course, you can also set TACoS values above 100%, in case you want to boost visibility of new product launches or attack competitors.