Total Advertising Cost of Sales (TACoS)
TACoS (Total Advertising Cost of Sales) measures ad spend as a percentage of total revenue — both ad-attributed and organic. It shows how dependent overall sales are on advertising.
Formula
TACoS = (Ad spend ÷ Total revenue) × 100%Example
Spend $500 on ads while total revenue (ads + organic) is $10,000 → TACoS = (500 ÷ 10,000) × 100 = 5%.
Why it matters
Falling TACoS over time is a healthy sign: ads are lifting organic sales, so you're less reliant on paid for each dollar. It's a strategic complement to ACoS.
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FAQ
What does a rising TACoS mean?
It can mean you're leaning more on ads for growth (e.g. a launch), or that organic sales are slipping — context matters.
Is TACoS an Amazon-only metric?
It originated with Amazon sellers but the concept — ad spend vs. total revenue — applies to any business measuring paid's share of overall sales.