TACoS

TACoS (Total Advertising Cost of Sales) measures the ratio of advertising spend to total revenue generated (including both ad sales and organic sales). It provides a holistic view of how advertising influences overall account growth.

Formula

Why it Matters

While ACoS measures the efficiency of specific campaigns, TACoS measures the overall health of your business.

• Low/Decreasing TACoS: Indicates that organic sales are growing, and the brand is becoming less dependent on paid ads.

• High/Increasing TACoS: Suggests that ad spend is eating into profit margins, or that organic sales are stagnating.

• Flat TACoS: Indicates a stable balance between ad spend and sales volume.

Note: A high TACoS is only acceptable during a product launch to drive initial visibility and ranking.