Which advertising metrics showcase the percentage of sales spent on advertising?
- Cost per click (CPC)
- Advertising cost of sales (ACOS)
- Return on ad spend (ROAS)
Explanation: The correct answer is ‘**Advertising cost of sales (ACOS)**.’ ACOS showcases the percentage of sales spent on advertising by calculating the ratio of ad spend to the total sales generated from those ads. It is an important metric for assessing the efficiency of an ad campaign, as it tells advertisers how much they are spending on advertising relative to the sales they are earning. A lower ACOS generally indicates a more efficient campaign, while a higher ACOS suggests that the cost of acquiring sales through ads may need to be optimized. In contrast, Cost per Click (CPC) measures the cost of each click on an ad, and Return on Ad Spend (ROAS) measures the revenue generated per unit of ad spend, both of which are different from ACOS in terms of showcasing the relationship between sales and advertising costs.