What is TACoS and how is it calculated?
Common seller question · Google search: 'tacos calculation' (10 impressions in 120 days)
Answer · AgentXray team
TACoS, or Total Advertising Cost of Sales, is calculated by dividing your ad spend by your total revenue, which includes both organic and ad-attributed sales. The formula is TACoS = ad spend ÷ total revenue (organic + ad). This metric provides a broader perspective on advertising efficiency at the brand level compared to ACoS, which only considers ad revenue. Monitoring TACoS is particularly important for sellers in competitive markets, as it helps assess how much of the overall business relies on advertising. A declining TACoS while sales grow typically indicates that organic sales are increasing, reducing reliance on ads.
For more details, you can check the TACoS definition and additional insights on TACoS.