In Amazon advertising, two metrics dominate every performance conversation: ACoS and TACoS.
They look similar, but they measure very different things. And for serious brands – the ones scaling into seven- and eight-figure revenue tiers – understanding that difference can mean the gap between profitable growth and wasted spend.
At Albert Scott, we use both metrics in tandem to create a clear, data-driven view of profitability across every campaign, product, and ad type. Here’s how to think about them strategically.
What Is ACoS (Advertising Cost of Sales)?
ACoS = (Ad Spend ÷ Attributed Ad Sales) × 100
This metric tells you how much you’re spending on ads to generate a dollar of attributed revenue.
For example:
+ If you spend $500 on Sponsored Ads and generate $2,000 in ad-attributed sales, your ACoS is 25%.
Why it matters:
- It’s the most direct way to gauge ad campaign efficiency.
- It’s useful for tactical optimization (bids, keywords, targeting).
- It helps you control immediate return on ad spend (ROAS).
But ACoS has one blind spot: it only accounts for sales attributed to ads. It ignores the halo effect – how ads can lift your organic visibility, branded searches, and long-term conversion rates.
That’s where TACoS comes in.
What Is TACoS (Total Advertising Cost of Sales)?
TACoS = (Ad Spend ÷ Total Sales) × 100
This metric includes both ad-attributed sales and organic sales.
It’s the more holistic measure of how your ad spend impacts total Amazon revenue.
Why it matters:
- It shows how ads are influencing your organic growth.
- It helps measure true efficiency across the entire account.
- It’s a better long-term profitability indicator.
If your TACoS is trending down over time while sales grow, that’s a healthy signal: your ads are driving more organic momentum and brand lift.
ACoS vs. TACoS: The Key Difference
| Metric | Measures | Best For | Signal |
| ACoS | Ad-attributed sales only | Campaign-level efficiency | Short-term ad ROI |
| TACoS | Total sales (ad + organic) | Account-level profitability | Long-term growth |
In other words:
+ ACoS tells you how well your ads convert.
+ TACoS tells you how well your ads grow your brand.
When to Focus on Each Metric
Early-stage brands should focus on ACoS to optimize performance and learn the market.
Growth-stage brands – especially those managing multiple SKUs or categories – should emphasize TACoS as the guiding metric. It reflects compounding effects like:
- Improved organic rank from paid velocity
- Higher branded search volume
- Repeat purchase lift
Albert Scott integrates both into every client dashboard, ensuring tactical adjustments (ACoS) ladder up to strategic efficiency (TACoS).
How to Interpret TACoS Trends
TACoS Decreasing, Sales Increasing → Healthy Growth
Your ads are fueling organic traction. Continue scaling incrementally while protecting margins.
TACoS Increasing, Sales Flat → Ad Dependency
Your organic growth is stalling. Revisit keyword mix, pricing, or conversion assets (images, A+ Content).
TACoS Stable, ACoS Increasing → Ad Inefficiency
Campaigns need optimization. Check bid inflation, search term relevance, or over-reliance on broad match.
How to Optimize for Both Metrics
1. Balance Spend Across Funnel Stages
Use Sponsored Products for efficiency and Sponsored Brands/Display for awareness. A balanced portfolio lowers TACoS over time.
2. Improve Listing Conversion Rate (CVR)
High-quality content (optimized images, titles, A+ modules) improves CVR – boosting organic rank and lowering TACoS.
3. Build Branded Search Volume
Every branded keyword sale is essentially “free” organic revenue. DSP retargeting and consistent brand storytelling both drive this.
4. Track TACoS Weekly, Not Daily
Organic signals compound. Weekly or biweekly TACoS reviews prevent overreactions to short-term fluctuations.
5. Sync Ads and Inventory
Stockouts inflate TACoS – your ads keep spending, but organic momentum crashes. Tie ad pacing to replenishment cycles.
Albert Scott’s TACoS Framework
We analyze TACoS and ACoS in context, not isolation:
- ACoS informs keyword-level and campaign optimization.
- TACoS shapes your overall growth trajectory.
Our proprietary reporting integrates Amazon Advertising Console, DSP, and Seller Central data into one model, giving clients a true view of advertising profitability across every ASIN.
This clarity allows brands to scale with confidence – not guesswork.
The Takeaway
ACoS measures performance.
TACoS measures impact.
You need both.
When tracked and optimized together, they reveal the full picture of how ads influence sales velocity, ranking, and profitability – the foundation of sustainable Amazon growth.
Professional Citations
- Amazon Advertising Help – Metrics and Reporting
- Amazon Seller Central – Performance Metrics
- Marketplace Pulse – Amazon Advertising Benchmarks
- Statista – Amazon Advertising Revenue Growth
- Amazon Brand Analytics