Worked examples
Maturing Amazon product
| Ad spend | $900.00 |
| Total revenue | $10,000.00 |
| Ad-attributed revenue | $3,500.00 |
| TACOS | 9.0% |
| Organic revenue share | 65.0% |
A 9% TACOS with 65% organic share — ads are a supplement, not life support.
Launch-heavy month
| Ad spend | $2,000.00 |
| Total revenue | $10,000.00 |
| Ad-attributed revenue | $6,000.00 |
| TACOS | 20.0% |
| Organic revenue share | 40.0% |
A 20% TACOS and only 40% organic — fine during launch, alarming at month twelve.
Frequently asked questions
What is a good TACOS?
Established products typically settle at 5–12%; launches often run 20–30% while ads do the heavy lifting. The trend matters more than the level: TACOS drifting down while total revenue grows means organic rank is compounding, exactly what you want. TACOS climbing at flat revenue means you are paying more each month for the same business.
What is the difference between TACOS and ACOS?
ACOS divides ad spend by ad-attributed sales only; TACOS divides the same spend by all revenue, organic included. ACOS grades the campaign, TACOS grades the business. A 25% ACOS looks identical whether ads drive 20% or 90% of your sales — TACOS is what separates a brand with organic pull from one entirely rented from the ad auction.
Why does organic revenue share matter?
Because it prices your independence. A store earning 65% of revenue organically survives a doubling of CPCs; a store at 15% organic share is one auction shock away from unprofitability. On marketplaces, organic share is also the dividend from past ad spend — sales rank earned by paid orders keeps paying after the campaign stops.
How do I lower TACOS without losing sales?
Shift spend from defense to offense: prune ad spend on search terms where you already rank organically top-3, and reinvest in terms where paid orders can still buy rank. Improve listing conversion (images, reviews, price) so both paid and organic traffic convert better — conversion gains lower TACOS from both directions at once.
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Part of the Advertising & ROAS collection.