TACoS(TACoS)
Advertising
Advertising
TACoS is ad spend divided by total revenue — including sales that happened without ads.
TACoS shows what advertising does for the whole business. Falling TACoS with rising revenue means organic and repeat sales carry more weight.
Use TACoS as a monthly figure, not a daily dial. For campaign steering, ROAS and CPA are more useful.
Tip
Read TACoS alongside revenue growth. That shows whether a low TACoS is healthy or whether there is room to invest more in ads.
Related terms
- ACoSACoS (Advertising Cost of Sale) is ad spend divided by the revenue those ads generate, as a percentage.
- ROASROAS is revenue generated by your ads divided by what you spend on them. A ROAS of 4 means €4 revenue per euro spent.
- Customer lifetime valueCustomer lifetime value is the total margin you earn from an average customer for as long as they stay, not just on the first purchase.