Why is my ACoS high? Start with break-even ACoS

Work out your break-even ACoS

Break-even ACoS is your profit per unit before advertising divided by the price. Above it, every ad sale loses money. Below it, ads earn – even if the number looks high.

If ACoS is above break-even, it can be a deliberate launch investment, but only with a plan and an end date.

Find the spend that brings nothing

Review search terms with clicks and no orders, add negatives, and repeat every one to two weeks. In neglected accounts this spend grows quietly.

Give your best search terms their own budget

When strong and weak terms share a campaign, the weak ones spend the budget. Move proven terms into exact-match campaigns and manage bids by intent.

Automatic campaigns are good for discovery, not as the whole account.

Watch TACoS, not just ACoS

TACoS – ad spend as a share of all sales – shows whether advertising builds organic sales. If it rises month after month, sales are increasingly bought rather than earned.

Check the page before the bids

Ads multiply what's behind them. If conversion is low, fix images, price and reviews first; otherwise every click costs more than it should.

Modules for this stage

• PPC Keywords & Campaign Structure – A grouped keyword core, match types, negatives and a campaign structure ready to build.
• Advertising Audit – See where your ad spend goes, what it brings back and the order to fix things in.
• Launch Strategy – A week-by-week launch plan: price, content, ads, budget and the numbers that show it's working.

More guides

• Not sure the niche is worth it
• Competitors undercut my price
• Low organic traffic