Many sellers celebrate a lower ACOS but ignore the bigger picture. That can lead to short term wins and long-term stagnation.
TACOS (Total Advertising Cost of Sales) shows how much your ad spend impacts your total revenue, including organic sales. As your organic rankings improve, TACOS should gradually decrease even if ACOS stays the same. Instead of cutting profitable campaigns just to lower ACOS, monitor whether your ads are helping organic growth over time. For example, a new private label product may start with a high TACOS, but as sales velocity and rankings increase, TACOS should trend downward while total revenue grows. That’s a stronger sign of sustainable success than ACOS alone.
How do you track TACOS in your account, and what trend have you noticed recently? Share your experience in the comments.