Take a look at the sample advertised product report shown below and analyze the different performance metrics. Which is the best performing campaign for advertising cost of sales (ACOS)?
- Designer fashion
- Fashion for all
- High street fashion
Explanation:
The correct answer is ‘**Fashion for all**.’ The campaign ‘Fashion for all’ is the best performing for advertising cost of sales (ACOS) because it likely has the lowest ACOS, indicating that the cost of generating sales through the campaign is more efficient compared to the other campaigns. ACOS is calculated by dividing the total ad spend by the total sales generated from the ad, and a lower ACOS means the campaign is achieving higher sales for less advertising cost. A lower ACOS is a sign of a well-optimized campaign that delivers a strong return on investment (ROI), making ‘Fashion for all’ the most cost-effective option among the choices, as it generates sales with a minimal ad spend relative to the revenue produced.