Muze AIDefinition
TACoS (total advertising cost of sale) is ad spend divided by total revenue including organic sales, expressed as a percentage. Unlike ACoS, which only counts ad-attributed sales, TACoS shows what advertising costs relative to the whole business. A falling TACoS with rising total sales is the sign that paid spend is building organic demand.
How it is calculated
TACoS = (Ad spend ÷ Total revenue) × 100
What to know
TACoS is most used on Amazon, where advertising influences organic rank. If ACoS is flat but TACoS is falling, your ads are lifting organic sales rather than just buying the ones you would have got anyway.
The reverse pattern, stable TACoS with rising ad spend, usually means you are paying for orders that organic search was already going to deliver.
Related terms
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