The Truth About TACOS: What Advertisers Need to Know

Gain insights that will help you maximize profits and scale your Amazon business.

This week on The Ad Project, Joe Shelerud and Matt Wiklund take a pragmatic look at the world of advertising metrics – specifically TACOS. Joe has reservations about TACOS, and he’ll explain why. Matt, on the other hand, sees its merits as a budgeting tool.

Here’s what you can expect:

  • TACOS, which measures ad spend as a percentage of total sales, is introduced, and Joe raises some concerns about its usefulness.
  • Joe argues that TACOS can be manipulated by advertisers and lacks a comprehensive view of advertising performance.
  • Matt highlights TACOS’ value as a metric for maintaining budget consistency, especially during seasonal fluctuations.

They both agree that while TACOS serves a purpose, it’s not the sole metric to consider. ACoS, new-to-brand customer acquisition, lifetime value, and market share provide a more complete picture of advertising success.

Joe and Matt recommend looking beyond TACOS and considering a broader range of metrics to evaluate advertising performance. For a deeper dive into this topic and a nuanced discussion on advertising metrics, listen to the full episode!