TACoS is the “big picture” ad metric that asks, “What did I spend on ads, and how does that compare to all the money this product brought in?” It goes beyond ACoS by including organic sales too, which is where long‑term profit usually lives. For Amazon sellers, TACoS is what you look at when you want to know whether advertising is building a brand or just keeping the revenue treadmill running.
- Use TACoS when you review overall performance for a product or account, not just how a single campaign is doing.
- You calculate it by dividing your total ad spend by total revenue (paid + organic) for the same period, then turning that into a percentage.
- If TACoS won’t drift down over a few months, trim weak campaigns, tighten targeting, and use winning keywords and creatives to strengthen your listings themselves.
