TACoS &
Profitability
Your ACoS might look healthy while your business bleeds profit. We manage Amazon advertising around TACoS and true contribution margin so every ad dollar builds long-term equity.
ACoS tells you how your ads convert. TACoS tells you how your ads grow your entire business.
ACoS
Only measures paid sales. A 25% ACoS means $0.25 spent for every $1.00 in ad-attributed revenue.
TACoS
Measures ad spend against all revenue, paid and organic. A 5% TACoS means your ads cost $0.05 per total dollar earned.
We track six metrics that together reveal whether your advertising is building wealth or burning it.
Contribution Margin Analysis
We calculate the true profit per unit after COGS, FBA fees, referral fees, and ad spend. This sets the ceiling for what you can afford to pay per click.
Break-Even ACoS
Your break-even ACoS equals your gross margin percentage. If margin is 35%, any campaign above 35% ACoS loses money on every sale.
TACoS Trending
A declining TACoS means organic sales are growing faster than ad spend. This is the strongest signal your advertising strategy is working.
Organic Revenue Ratio
Healthy brands generate 60-80% of revenue organically. We track this ratio to ensure your paid strategy builds organic momentum.
Ad-Driven Velocity
Paid sales boost your Best Seller Rank and keyword rankings. We measure how ad velocity translates into lasting organic lift.
Profit Per Unit
Revenue means nothing without profit. We calculate post-ad profit per unit to ensure you never scale unprofitable SKUs.
Our optimization cycle runs continuously, steering every campaign toward real profitability.
Margin Mapping
Calculate contribution margin and break-even ACoS for every SKU in your catalog.
Target Setting
Set ACoS and TACoS targets per product based on lifecycle stage, margin, and growth goals.
Bid Optimization
Adjust bids, placements, and budgets using profit signals rather than revenue signals alone.
Measure the Flywheel
Track how paid spend lifts organic rank, grows total revenue, and lowers TACoS over time.
The relationship between ACoS and TACoS reveals the real health of your advertising investment.
Organic Growth Working
Ad efficiency dipped but total revenue grew faster. Your ads are fueling organic momentum.
Profitability at Risk
Ad costs rising while organic share shrinks. You are becoming more dependent on paid traffic.
Peak Efficiency
Ads converting better and organic is accelerating. This is the ideal state for scaling spend.
Organic Plateau
Campaign efficiency improved but total growth stalled. Time to expand keyword coverage or test new ad types.
Typical outcomes within the first 90 days of our TACoS-driven management approach.
Reduction
Share Growth
Improvement
ROAS
Let our team run a full profitability audit on your Amazon advertising and show you exactly where margin is being left behind.
Book a Profitability Audit →← Back to Amazon Advertising