Total ACOS (as known as TACOS) is the ad spend divided by total sales (organic & sponsored)
good PPC optimization takes into account the impact of PPC on the Total Sales of the marketplace. That's why the total ACOS (TACOS) is an important parameter.
But unfortunately, due to the lack of information in Amazon's reports, our tool doesn’t allow us to manage advertising through the total ACOS (TACOS).
However, PPC can still be optimized through TACOS with a simple trick.
You can test an ACOS target for 1 to 2 weeks, and look at the impact on total sales:
If TACOS > TACOS goal ==> decrease the ACOS target
If TACOS <= TACOS goal ==> increase the ACOS target
Innovative metrics like (Total ACOS per asin), or TACOS per asin and Ad Sales Share, are very helpful for giving you a more holistic picture of your business. This is because they combine sales AND advertising data. What does this mean for you? You can make better decisions for your business
For example, Standard metrics like ACOS or ROAS tell you how well your ads are perfoming, but they don’t consider the overall picture. TACOS and Ad Sales Share help you answer crucial questions like:
Are you relying too heavily on ads for sales? - Ad sales share and TACOS will both help you answer this question. If your ad Sales Share is too high, you might need to focus on boosting organic sales. If you’re TACOS is too high, your overall profitably is likely suffering as you don’t have organic sales. With just an ACOS or ROAS metrics, you’d only be able to understand ad performance. Even with a good ACOS or ROAS, your overall profitably might be suffering without strong enough organic sales, and you wouldn’t be able to know that, if you looked ACOS or ROAS alone.
So By combining sales and ad data, more custom metrics like these empower you to make smarter business decisions.