Method and assumptions
ACOS measures attributed advertising efficiency, while TACOS shows how advertising spend relates to the entire business. Read both together to avoid optimizing paid sales in isolation.
ACOS = ad spend / ad-attributed sales. TACOS = ad spend / total sales. ROAS = ad-attributed sales / ad spend.
Common questions
Why can TACOS be lower than ACOS?
TACOS divides spend by all sales, including non-ad-attributed sales. ACOS only uses sales attributed to advertising.
What is a good ACOS?
There is no universal target. Compare ACOS with the product contribution margin and your growth objective.
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