Optimizing Advertising Spend with TACOS: A Holistic Approach to Revenue-Based Management
TACOS (Total Advertising Cost of Sales) is a crucial metric in Amazon advertising measuring the total revenue spent on ads. Unlike ACOS (Advertising Cost of Sales), which focuses only on ad-attributed revenue, TACOS provides a broader view of how advertising affects overall sales. Effective TACOS target management helps optimize profitability, ensure sustainable ad spend, and drive long-term growth.
How TACOS Target Works
Unlike ACOS, which is calculated at the level of an individual ad target (such as a keyword), an ad group, a campaign, or a specific strategy, TACOS is defined at the product level or for a group of products.
To properly manage TACOS, a new type of advertising strategy is introduced that encompasses all campaign types.
⚠ Important: TACOS and ACOS Cannot Be Used Simultaneously
TACOS management cannot be applied to ASINs that are already being advertised under ACOS management.
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If an ASIN is already part of an ACOS-based strategy, it cannot be included in a TACOS strategy at the same time.
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When setting up a TACOS strategy, ASINs that are already in ACOS management will appear in gray and will not be selectable.
Recommendation
It is not recommended to use TACOS management for new product launches. Instead, focus on Constant bid and Monthly Budget modes first to build initial traction before transitioning to TACOS management for long-term profitability and sustainable growth.