TACoS is total ad spend divided by total revenue, including organic. It is the only Amazon Ads metric that ties campaign spend to the P&L.
Formula
TACoS = Total Ad Spend / Total Revenue × 100ExampleIf a brand spends $20,000 on Amazon Ads in a month and generates $100,000 in total revenue (organic + paid), TACoS is 20%.
Unlike ACoS, which only measures ad-attributed revenue, TACoS captures the actual relationship between ad spend and the business. A 20% TACoS means 20 cents of every revenue dollar went to ads - a number that lines up cleanly with CM1 and CM2 on the P&L.
TACoS is the metric to optimise for at the business level. ACoS still has its uses inside campaign-level decisions, but for any question about whether the account is healthy, TACoS is the answer.
Read the full essay on TACoS →