ACoS (Advertising Cost of Sales) is your ad spend divided by the sales those ads bring in. If you spend ₹10,000 and ads bring ₹40,000 in sales, your ACoS is 25%. A lower ACoS means each rupee of ads works harder.
1. Find the search terms that waste money
Download the Search Term report for the last 60 days. Sort by spend and look for terms with many clicks and no orders.
| Search term | Clicks | Spend | Orders | Action |
|---|---|---|---|---|
| cotton kurta set | 140 | ₹2,380 | 9 | Keep |
| kurta for men | 96 | ₹1,540 | 0 | Add as negative |
| cheap kurti | 210 | ₹1,890 | 1 | Add as negative |
Example figures for illustration.
2. Fix the listing before raising bids
Ads bring the click, the listing makes the sale. Check your main image, price, rating and the first three bullet points before you raise any bid.
3. Split campaigns by intent
- Brand terms: cheap, high-converting, protect them.
- Category terms: where growth comes from, watch ACoS closely.
- Competitor terms: test small, keep only what converts.
4. Watch TACoS too
TACoS is ad spend divided by total sales, including organic. If TACoS falls over time, your ads are helping organic rank, even if ACoS stays the same.
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