Amazon TACoS: What Is It and Why It Matters To Advertisers

By Tinuiti Team

Amazon TACoS is one of the latest “buzz” metrics in sales and advertising conversations the past few months. But what does it mean exactly? And how does TACoS relate to organic sales? Can it help brands achieve long-term growth on the Marketplace? 

We spoke with our own experts to find out. 

What is Amazon TACoS?

Total Advertising Cost of Sale also referred to as TACoS measures advertising spend relative to the total revenue generated. 

The term (now popular in the Amazon advertising space) may provide better insight into the long-term growth of a brand.

Here’s how Courtney Macfarlane, Senior Analyst, Marketplace Search at Tinuiti explains it:

“With advertising we’re increasing the sales velocity for a particular product. By increasing sales velocity, we’re also impacting organic sales. Therefore, investing in advertising can help grow organic sales in addition to ad sales. Looking at TACOS in addition to ACOS gives you a more holistic view of how your ad spend is affecting overall sales. If your ultimate goal is to grow total sales, you might want to accept a higher ACOS in the short term to really increase sales velocity and improve your TACOS in the long term.”


Increasing vs. Decreasing TACoS






“We calculate TACoS for a successful supplements vendor. Although the ACoS is high, we are only operating at a 20% TACoS. As long as we maintain the TACoS goal, this vendor will continue to grow their brand awareness and improve their organic sales,” Macfarlane says.

“A lot of my clients use TACOS as a metric for success along with ACoS. Ultimately, TACoS provides a big picture view of the account and also helps us figure out what we should be doing to improve our long term strategy. Especially for Amazon Sellers, I include TACoS in my reports often.”

To learn more about how TACoS can improve your long-term strategy, email [email protected]

You Might Be Interested In

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.