Amazon TACOS Optimization
— the metric that actually matters.
ACOS tells you how efficiently your ads are performing in isolation. TACOS tells you whether your advertising strategy is actually profitable for the business. We optimize for TACOS — the metric that accounts for organic revenue, not just attributed ad sales.
ACOS — incomplete view
Ad Spend ÷ Ad Revenue × 100
Measures ad efficiency in isolation. Ignores organic sales entirely — giving a distorted view of advertising's true business impact.
TACOS — full business view
Ad Spend ÷ Total Revenue × 100
Measures advertising as a percentage of total business revenue — including organic. Maps directly to overall profitability.
How it works
The two levers of TACOS reduction
Reduce ad waste (lower the numerator)
Systematic negative keyword addition eliminates spend on non-converting queries. Match type architecture separates high-converting exact match keywords from broad discovery — preventing profitable terms from subsidizing irrelevant traffic. Bid adjustments remove or reduce bids on poor-performing ASINs and placements.
Grow organic revenue (grow the denominator)
As organic rank improves through listing optimization and CVR improvement, organic sales increase without proportional ad spend increases. The same ad budget represents a smaller percentage of a larger total revenue base — TACOS declines naturally as organic compounds.
Track the flywheel
TACOS declining while ACOS remains stable is the signal that the strategy is working. Ads are building organic momentum — not just funding direct attributed purchases. We track both metrics weekly to distinguish noise from signal.
Calibrate spend against margin, not category benchmarks
A 10% TACOS is excellent for a 40% margin product and catastrophic for a 12% margin product. We work backwards from your gross margin to define what TACOS ceiling still makes the business work — then optimize toward it.
Common questions
TACOS questions answered
Optimize your Amazon advertising for real profitability
Book a free consultation. We'll review your current ACOS and TACOS trends and identify the highest-impact opportunities to improve overall advertising efficiency.
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