TACoS (Total Advertising Cost of Sales)
The percentage of ad spend relative to total revenue (both organic and ad-attributed). Calculated as (Ad Spend ÷ Total Revenue) × 100.
What Is TACoS?
TACoS stands for Total Advertising Cost of Sales. Unlike ACoS which only considers ad-attributed revenue, TACoS measures your ad spend against all revenue - including organic sales.
How to Calculate TACoS
TACoS = (Total Ad Spend ÷ Total Revenue) × 100
If you spent $1,000 on ads and your total revenue (organic + paid) was $10,000, your TACoS is 10%.
Why TACoS Matters More Than ACoS
A declining TACoS with stable or growing revenue means your ads are driving organic growth - the advertising flywheel is working. A rising TACoS means you're becoming more dependent on paid traffic, which is a warning sign.
For established brands, a healthy TACoS typically ranges from 10% to 15%.
How SellerLegend Helps
SellerLegend calculates TACoS automatically by combining your PPC spend data with total sales revenue, giving you the complete picture in a single dashboard view.
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