How do I calculate TaCoS?

TaCoS = (Total Ad Spend / Total Revenue) x 100. Total revenue includes both ad-attributed sales and organic sales. You need data from both Amazon Advertising and Seller Central to calculate true TaCoS, or use a tool that integrates both automatically.

Why is my TaCoS increasing?

Rising TaCoS usually means either: (1) ad spend is growing faster than organic sales, (2) organic ranking has dropped requiring more ad support, or (3) increased competition is driving up CPCs. Check your organic keyword rankings and review if your ad efficiency has declined.

Is ACOS or TaCoS more important?

TaCoS is generally more important because it shows your total business health. ACOS can be misleading, a campaign with 50% ACOS might look bad, but if it's driving significant organic sales, the true TaCoS could be excellent. Use TaCoS for strategic decisions, ACOS for campaign-level optimization.

How can I lower my TaCoS?

Focus on growing organic sales faster than ad spend: (1) Improve product listings to boost conversion rates, (2) Build reviews to strengthen organic ranking, (3) Target exact match keywords that drive ranking improvements, (4) Optimize bids based on total performance not just ACOS.

The Complete Guide to Amazon TaCoS Optimization

TaCoS is the metric that smart Amazon sellers obsess over, here's why it matters more than ACOS and how to improve yours.

Published: December 18, 2025

If you're only tracking ACOS, you're flying blind.TaCoS (Total Advertising Cost of Sales) gives you the complete picture of how advertising impacts your Amazon business, including the organic sales your ads are driving behind the scenes.

What Is TaCoS?

TaCoS stands for Total Advertising Cost of Sales. Unlike ACOS (which only measures ad spend vs. ad-attributed sales), TaCoS measures your ad spend against your total revenue, both organic and paid.

The TaCoS Formula

TaCoS = (Total Ad Spend ÷ Total Revenue) × 100

Total Revenue = Ad-Attributed Sales + Organic Sales

TaCoS vs. ACOS: What's the Difference?

Metric	Formula	What It Tells You
ACOS	Ad Spend ÷ Ad Revenue	Efficiency of ads in generating ad-attributed sales
TaCoS	Ad Spend ÷ Total Revenue	Impact of ads on your entire business

The key difference: ACOS ignores organic sales entirely. But your ads don't just drive direct conversions, they also improve your organic ranking by increasing sales velocity, generating reviews, and building brand recognition.

Why TaCoS Matters More Than ACOS

1. It Captures the Full Flywheel Effect

Amazon's algorithm favors products that sell. When ads boost your sales velocity, you rank higher organically, which drives more organic sales. ACOS misses this entirely. TaCoS captures the complete picture.

2. It Prevents Short-Sighted Decisions

Sellers who optimize only for ACOS often pause campaigns that look expensive but are actually driving significant organic growth. TaCoS helps you avoid cutting the campaigns that are building your long-term organic presence.

3. It Shows Business Health Over Time

A healthy Amazon business has declining TaCoS over time. As organic sales grow faster than ad spend, TaCoS drops, even if ACOS stays flat. This trend indicates sustainable growth, not just efficient ads.

What's a Good TaCoS Target?

Your ideal TaCoS depends on your product lifecycle and goals:

Product Stage	Typical TaCoS	Goal
New Product Launch	25-40%	Aggressive growth, building ranking
Growth Phase	15-25%	Scaling with efficiency
Mature/Profitable	5-15%	Sustainable, organic-heavy sales

The key isn't hitting a specific number, it's trending in the right direction. A declining TaCoS means your organic business is growing faster than your ad investment.

Start with your break-even ACOS

Before optimizing TaCoS, know your ACOS ceiling. Our free calculator shows your profitability threshold based on your actual margins.

Calculate your break-even ACOS

5 Ways to Improve Your Amazon TaCoS

1. Invest in Ranking-Building Campaigns

Target exact match keywords for your main search terms. These campaigns might have higher ACOS, but they build organic ranking faster, which improves TaCoS over time.

2. Improve Your Product Listings

Better conversion rates mean more sales from the same traffic, both paid and organic. Optimize your images, bullets, A+ content, and backend keywords.

3. Build Your Review Base

More reviews = higher organic conversion rate = better organic rankings = lower TaCoS. Use ads strategically to drive initial sales that generate reviews.

4. Track Organic Rank Changes

Monitor how your organic rankings change when you adjust ad spend. This helps you understand the true ROI of your advertising investment.

5. Use Automated TaCoS Tracking

Calculating TaCoS manually requires combining data from Seller Central and Advertising Console. Tools that automate this make tracking effortless.

Track True TaCoS with Prism

Prism integrates with both Seller Central and Amazon Advertising to calculate your true TaCoS automatically. See exactly how your ads impact total business revenue, not just attributed sales.

✓Automatic TaCoS calculation across all products
✓Historical TaCoS trends to track improvement
✓AI recommendations optimized for TaCoS, not just ACOS

Frequently Asked Questions

A 'good' TaCoS depends on your product lifecycle. New launches typically run 25-40% TaCoS as they build ranking. Growth-phase products aim for 15-25%. Mature, profitable products often achieve 5-15% TaCoS. The goal is a declining trend over time as organic sales grow.

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