Is Your Amazon Ad Spend Fueling Growth or Just Draining Margins?
In the world of Amazon selling, success isn’t just about running ads—it’s about running them profitably. And one metric that truly tells the story? TACoS (Total Advertising Cost of Sale).
📊 What is TACoS?
It’s the percentage of your total revenue that goes toward ad spend.
🧮 Formula:
TACoS = (Ad Spend ÷ Total Sales) × 100
📌 Example:
- • Ad Spend: $2,500
- • Total Sales: $25,000
- • TACoS = 10%
❓ Why Does It Matter?
- ✅ Low TACoS = Healthy organic growth + scalable profits
- ⚠️ High TACoS = You’re leaning too hard on ads to make sales
🔥 Pro Tips from the Euphoric Ads Playbook:
- 📈 Track Trends, Not Spikes: A one-off TACoS jump? Fine. A rising pattern? Time for a fix.
- 🧩 Break It Down by Product: Some SKUs need more ad fuel, some are organic champions.
- 🔄 Cross-Check with ACoS: Low ACoS but rising TACoS = Organic sales may be sliding.
- 🚀 Boost Organic Firepower: Strong listings, outside traffic, and real brand equity can lower your TACoS over time.
If your TACoS is creeping up every month, don’t just throw more dollars at ads—let’s talk strategy.