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.
In practice
A low TACoS can also mean you are underinvesting and leaving growth on the table. Read it alongside revenue growth.
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.