Total
Advertising Cost of Sale (TACOS) is a useful metric because it gives
brands more visibility into their business as a whole, compared to other
return-on-investment metrics.
Whereas
ACOS is calculated by dividing ad spend by ad sales, TACOS is calculated
by dividing ad spend by total sales, which includes organic and ad
sales. Brands can then use this metric to see how much they are spending
to acquire a sale and incorporate it into their margins.
If
you notice that your TACOS is increasing while your overall sales remain
constant or decrease, it might indicate that your paid efforts are
cannibalizing your organic sales rather than driving incremental
growth.
-Andrew
Messinger, PPC Specialist
