TACOS

Advertising

Total Advertising Cost of Sales. TACOS = ad spend ÷ total revenue (organic + ad). Healthier metric than ACOS for measuring brand-level advertising efficiency.

TACOS, or Total Advertising Cost of Sales, is calculated using the formula TACOS = ad spend ÷ total revenue (organic + ad). This metric provides a broader view of advertising efficiency at the brand level compared to ACOS, which only considers ad revenue. For EU sellers, monitoring TACOS matters, especially in competitive markets like DE, FR, and IT, where advertising costs can significantly impact profitability. A healthy TACOS percentage typically ranges from 5% to 15%, depending on the product category and competition. Sellers using Amazon Advertising should regularly review their TACOS in conjunction with tools like the Search Term Report to identify high-performing keywords and optimize campaigns. A trade-off exists; while a lower TACOS indicates better efficiency, it may also suggest underinvestment in advertising, potentially limiting visibility and sales growth. Sellers should aim to balance TACOS with overall sales objectives, particularly during peak shopping seasons like Black Friday or Prime Day, when advertising spend may need to increase to maintain competitive positioning.

Gerelateerd: ACOS, Sponsored Products