TACoS (Total Advertising Cost of Sale)
Definition
Ad spend as a percentage of your total sales, both from ads and organic. It shows how dependent your overall business is on advertising.
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Formula
TACoS % = Ad Spend ÷ Total Sales × 100ACoS judges the ads; TACoS judges the business. A falling TACoS means organic sales are growing on top of advertising.
It is similar to MER but usually measured per channel. Watch for: rising TACoS with flat sales, which means you are paying more to hold the same position.
Example
$15,000 of Amazon ad spend on $150,000 of total Amazon sales is a 10% TACoS, even if ACoS on the ads alone is 30%.