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TACoS

Total advertising cost of sales

Amazon ad spend as a percentage of total Amazon revenue, organic included.

TACoS (total advertising cost of sales) is ad spend divided by total Amazon revenue — organic sales included. Unlike ACoS, it shows how dependent your whole Amazon business is on ads. A low and falling TACoS usually means ads are lifting organic rank; a rising TACoS means you're leaning harder on ads to hold sales.

Formula

TACoS = Ad spend ÷ Total revenue × 100

Example: $3,000 spend on $40,000 total revenue = 7.5% TACoS.

What a good result depends on

Depends on stage — launches run 20%+, mature products often settle around 5–15%. Watch the trend.

Common mistakes

  • Using TACoS for campaign decisions — that's ACoS's job.
  • Ignoring whether total revenue is actually growing with the spend.
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