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It is the reciprocal of ROAS — a 25% ACOS is a 4.0 ROAS, a 50% ACOS is a 2.0 ROAS — and it answers the same question from the cost side: of every hundred baht of attributed revenue, how many went to the ad auction. Amazon sellers grew up on ACOS and Shopee, Lazada, and TikTok Shop sellers mostly grew up on ROAS, but the two are the same measurement and inherit the same limitation: both use gross attributed revenue, so neither knows whether the sale was profitable.",[386,387,358],"h2",{"id":357},[389,390,392],"pre",{"language":391},"text",[393,394,396],"code",{"class":395},"language-text","ACOS = Ad spend \u002F Attributed revenue × 100%\nACOS = 1 \u002F ROAS × 100%\n\nBreak-even ACOS = contribution rate × 100%",[386,398,361],{"id":360},[389,400,401],{"language":391},[393,402,403],{"class":395},"A campaign spends ฿2,500 and is attributed ฿10,000 of revenue.\nACOS = 2,500 \u002F 10,000 = 25%  (equivalently, ROAS 4.0)\n\nThe SKU keeps 15% contribution before ads, so break-even ACOS = 15%.\nAt 25% ACOS the campaign is 10 points of revenue underwater.",[386,405,364],{"id":363},[382,407,408],{},"Break-even ACOS has an unusually clean form: it is simply the contribution rate. If a product keeps 30 baht of contribution on a 100 baht sale before ads, then 30% is exactly the share of revenue you can hand to the auction before the sale stops paying. This makes ACOS the easier of the two metrics to reason about in a meeting — everyone can hold “our margin is 30%, so our ceiling is 30%” in their head, where the ROAS equivalent of 3.33 requires a division. The catch is identical to ROAS: the contribution rate must be a real one, built from order-line economics rather than from the wholesale-to-retail spread.",[386,410,367],{"id":366},[382,412,413],{},"They are algebraically identical, so the choice is about which errors each invites. ACOS compresses the profitable range into a small band near zero and stretches the unprofitable range toward infinity, which makes bad campaigns look dramatic and good ones look indistinguishable. ROAS does the reverse: it separates high performers cleanly and squashes everything unprofitable into the gap between 0 and 1. For triage and alerting, ACOS reads better because it has a natural ceiling to compare against. For scaling decisions, ROAS reads better because the differences between a 6 and a 9 are visible. Most mature ad operations carry both and argue in whichever one makes the trade-off legible.",[386,415,370],{"id":369},[382,417,418],{},"Total ACOS divides ad spend by all revenue in the period, not just ad-attributed revenue. It is a useful counterweight because it moves when ads cannibalise organic sales: if attributed revenue rises while total revenue does not, ACOS improves and total ACOS does not. That divergence is the cheapest available signal that a campaign is buying customers who were already coming, which is the question incrementality testing answers properly. Total ACOS is not a substitute for that test, but it is free, and it catches the most obvious cases.",[386,420,373],{"id":372},[382,422,423],{},"ACOS is the metric most ad dashboards optimize toward, and on its own it is misleading in a specific direction: it always makes campaigns look better than they are, because the denominator is gross. A 25% ACOS sounds comfortably efficient until you account for 15% marketplace fees, 60% COGS, and 5% in seller-funded vouchers — at which point the campaign has consumed 25 points of a 15-point contribution rate and is losing ten baht per hundred of revenue it generates.",[425,426,428],"blog-callout",{"title":427},"Common mistake","Treating a category benchmark ACOS as a target. A published “good ACOS for fashion is 15%” carries no information about your COGS, your commission band, or your voucher policy. The only ACOS ceiling that means anything is your own contribution rate, and two sellers in the same category can differ on it by 20 percentage points.",[386,430,376],{"id":375},[382,432,433],{},"DataGlass shows platform ACOS next to break-even ACOS — the contribution rate of the SKU mix the campaign actually sold, not a shop-wide average. Campaigns whose ACOS sits above their own break-even line are surfaced as loss-making regardless of how they rank in the platform dashboard.",[386,435,379],{"id":378},[437,438,439,445,451,457],"ul",{},[440,441,442],"li",{},[443,444,12],"a",{"href":13},[440,446,447],{},[443,448,450],{"href":449},"\u002Fen-id\u002Fblog\u002Fincrease-shopee-profit","Increase Shopee profit",[440,452,453],{},[443,454,456],{"href":455},"\u002Fen-id\u002Fblog\u002Fhow-to-calculate-true-shopee-roas","How to calculate true Shopee ROAS for profit",[440,458,459],{},[443,460,462],{"href":461},"\u002Fen-id\u002Fblog\u002Fhow-to-reduce-shopee-ad-waste","How to reduce Shopee ad waste without killing sales",[464,465,466,467,468,469,470,471],{"id":357,"depth":354,"text":358},{"id":360,"depth":354,"text":361},{"id":363,"depth":354,"text":364},{"id":366,"depth":354,"text":367},{"id":369,"depth":354,"text":370},{"id":372,"depth":354,"text":373},{"id":375,"depth":354,"text":376},{"id":378,"depth":354,"text":379},{"id":473,"cta":474,"extension":5,"glossary":42,"meta":480,"related":481,"stem":482,"whatIs":483,"__hash__":484},"glossaryTerm_en\u002Fen\u002Fglossary-term.yml",{"headline":475,"description":476,"primaryCta":477,"secondaryCta":478},"Put this number to work on your own shops","See it computed from your orders, fees and ads, with a demo on your data.",{"label":57,"to":58},{"label":479,"to":28},"See pricing",{},"Related terms","en\u002Fglossary-term","What is {term}?","lxyPsyClqTqVxZhmfDihDsuAz7Al3t22gFHKeu2Lza8",{"id":486,"categories":487,"domain":494,"extension":5,"fallback":495,"home":498,"industry":507,"meta":512,"pricing":513,"stem":525,"__hash__":526},"og_en\u002Fen\u002Fog.yml",[488,489,490,491,492,493],{"slug":289,"label":290},{"slug":292,"label":27},{"slug":294,"label":295},{"slug":297,"label":298},{"slug":303,"label":304},{"slug":306,"label":48},"dataglasslabs.com",{"title":496,"description":497},"DataGlass","The decision engine for Shopee, Lazada and TikTok Shop sellers.",{"chart":499,"metrics":500},"Net profit, last 30 days",[501,504],{"label":502,"value":503},"Net profit","฿1.24M",{"label":505,"value":506},"Profit ROAS","3.4x",{"axis":508,"point":509},"Ad spend",{"label":510,"value":511},"Next baht still pays","+฿0.42",{},{"plans":514},[515,519,522],{"name":516,"price":517,"period":518},"Free","฿0","\u002Fmonth",{"name":520,"price":521,"period":518},"Standard","฿1,499",{"name":523,"price":524,"period":518},"Pro","฿2,499","en\u002Fog","63L8y4Lv8I2q3NvR26fMXU1sE9Wd7TZaz2l_tV6oZuo",[],[529,533,537,541,545,549],{"path":530,"title":531,"short":532,"draft":317},"\u002Fglossary\u002Ftrue-roas","True ROAS","Advertising return after platform fees, COGS, vouchers, and fulfillment — the profit-aware number platform dashboards rarely show.",{"path":534,"title":535,"short":536,"draft":317},"\u002Fglossary\u002Fbreak-even-roas","Break-even ROAS","The platform ROAS at which a campaign returns exactly what it costs. One divided by your contribution rate — the single number every ad target should be built on.",{"path":538,"title":539,"short":540,"draft":317},"\u002Fglossary\u002Fcogs","COGS","Cost of Goods Sold — the landed unit cost of getting a product into your hands. The number every margin calculation hinges on.",{"path":542,"title":543,"short":544,"draft":317},"\u002Fglossary\u002Fmarketplace-fees","Marketplace fees","The platform’s cut on every order — commission, transaction, and seller-funded promotions. The largest hidden line item for most sellers.",{"path":546,"title":547,"short":548,"draft":317},"\u002Fglossary\u002Fad-waste","Ad waste","Ad spend that did not pay back after fees, COGS, and fulfillment — the unprofitable share of a marketplace ad budget.",{"path":550,"title":551,"short":552,"draft":317},"\u002Fglossary\u002Fpoas","POAS","Profit on ad spend — contribution earned divided by ad spend, where ROAS uses revenue. A POAS of 1.0 is break-even; a ROAS of 1.0 is a large loss.",1792785063652]