Cost Of Sales (COS) - Definition

Digital advertising is the land of acronyms and technical terms. Our glossary can help you make sense of it all with definitions of the most common terminology.

What is Cost Of Sales (COS)?

The cost of sales (COS) is a metric that measures the efficiency of a marketing campaign. It’s calculated by dividing the total cost of the campaign by the revenue generated from it. In simpler terms, COS represents the percentage of income that goes towards covering the cost of advertising. Formula: COS = (Total ad spend / Revenue generated) x 100COS = Ad spend / Revenue driven

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