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GlossaryOctober 27, 20252 min read

Total Advertising Cost of Sales (TACoS)

Amazon TACoS shows organic health. 5-15% is healthy. Declining TACoS = ads building organic momentum.

By The Ad Spend
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Amazon metric showing total ad spend as percentage of total revenue (including organic sales). Shows whether ads build or replace organic sales.

Formula

(Total Ad Spend ÷ Total Sales) × 100

Benchmark range

Healthy TACoS: 5-15%. Decreasing TACoS over time = ads driving organic growth. Stable high TACoS = ad dependency.

Why it matters

TACoS reveals if ads are building organic momentum or just renting sales. If ACoS is 30% but TACoS is 10%, organic sales are strong. If ACoS and TACoS are similar, you're dependent on ads for nearly all sales—risky.

Where it applies

  • Amazon Ads

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