Amazon PPC

Amazon TACOS Guide

TACOS (Total Advertising Cost of Sales) = ad spend divided by total revenue. Unlike ACOS, which only evaluates ad-attributed sales, TACOS shows whether advertising is improving the whole business, including organic sales.

TACOS vs ACOS

• ACOS is tactical: keyword-level and campaign-level efficiency.
• TACOS is strategic: total revenue impact and growth quality.
• ACOS can improve while TACOS worsens if organic sales fail to scale.

Set TACOS Targets by Stage

1. Launch stage: tolerate higher TACOS while building rank and review velocity.
2. Growth stage: TACOS should trend down as organic sales contribute more.
3. Mature stage: keep TACOS within profit guardrails and cashflow limits.

Weekly Review Loop

• Track 7-day and 28-day TACOS trends to avoid reacting to noise.
• Review organic share, repeat-order mix, and ranking movement together.
• Use the profit calculator to align TACOS decisions with break-even ACOS and net-margin thresholds.
• If TACOS rises without organic growth, cut low-contribution terms first.

Common Mistakes

• Chasing low ACOS while ignoring total sales and organic contribution.
• Overreacting to short promotion windows before trend confirmation.
• Reviewing TACOS only at account level and missing SKU-level loss pockets.

Takeaway

ACOS and TACOS should be used together. ACOS manages tactical efficiency. TACOS validates long-term growth quality. Margin modeling should remain the final decision layer before scaling spend.