Important Marketing Formulas

Question 1

ACoS

Answer 1

ACoS= ad spend/sales

Commonly referred to as simply ACoS, Advertising Cost of Sale is a key metric used to measure the performance of Amazon Sponsored Products campaigns. It helps to measure profitability by indicating the ratio of ad spends to targeted sales.

Question 2

What is the ROAS formula?

Answer 2

Gross Revenue/ad spend = ROAS

Example: 50 to 1 ratio

Question 3

Profit Margin formula

Answer 3

Gross Profit / Total Revenue * 100

Question 4

Markup formula

Answer 4

Ad Spend / Total Budget = Markup

Question 5

NGR (Net Gaming Revenue)

Answer 5

Amount Wagered – Winning Payouts – All Bonuses – All Taxes

Represents the real profits an online gambling site makes after the total revenue is cleared of expenses. It is commonly used to analyze business profitability, dividends payments, etc. In essence, NGR measures a gambling establishments net revenue, excluding operating expenses such as:

Player Bonuses (welcome bonus, no-deposit bonus, free spins, cashback, etc.)
Payment system fees
Payments to casino software solutions providers
Payments to partner companies
Licensing fees
Good and services taxes (tax that may be levied on all the operator’s gaming supplies