{"id":23579,"date":"2021-09-29T07:28:40","date_gmt":"2021-09-29T07:28:40","guid":{"rendered":"https:\/\/www.intentwise.com\/blog\/?p=23579"},"modified":"2024-02-06T07:22:28","modified_gmt":"2024-02-06T15:22:28","slug":"amazon-tacos","status":"publish","type":"post","link":"https:\/\/www.intentwise.com\/blog\/retail-media\/amazon-tacos\/","title":{"rendered":"Ever Wondered What Amazon’s Aggregate TACOS Is?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

Two metrics get a lot of attention in the world of Amazon advertising: ACOS & TACOS. <\/p>\n\n\n\n

ACOS stands for Advertising Cost Of Sales, and TACOS stands for Total Advertising Cost of Sales. Here is the math behind them: (ACOS=Ad Spend\/Ad Sales), (TACOS=Ad Spend\/Total Sales). ACOS is a measure of advertising efficiency, and TACOS indicates the impact of ad spend on the top line.<\/p>\n\n\n\n

The question that comes up all the time is, what should my TACOS be? We thought an estimate of Amazon’s aggregate TACOS could serve as a good starting point in addressing this question. The math behind it would be Ad Spend\/Amazon’s GMV (Gross Merchandise Value). Below are Amazon’s estimated GMV and ad revenue numbers for 2019 and 2020:<\/p>\n\n\n\n

\"Amazon
Estimates for Amazon’s GMV & Ad revenue from 2019 & 2020 | Source: 1<\/a><\/em>,2<\/a><\/figcaption><\/figure>\n\n\n\n

Amazon’s aggregate TACOS has been around 4-5% for the past couple of years.<\/strong> This metric is interesting in a couple of ways<\/p>\n\n\n\n

    \n
  1. As an advertiser, you can use this as a benchmark in evaluating your TACOS. Note that this is an aggregate measure and could vary drastically by category.<\/li>\n\n\n\n
  2. Perhaps this metric helps us understand how big retail media could get other retail platforms such as eBay, Target, Walmart, Instacart. Maybe 4-5% of online GMV is what we should expect as the size of Retail media across all retailers<\/li>\n<\/ol>\n\n\n\n

    This post has been updated.<\/em><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"

    Two metrics get a lot of attention in the world of Amazon advertising: ACOS & TACOS. ACOS stands for Advertising Cost Of Sales, and TACOS stands for Total Advertising Cost of Sales. Here is the math behind them: (ACOS=Ad Spend\/Ad Sales), (TACOS=Ad Spend\/Total Sales). ACOS is a measure of advertising efficiency, and TACOS indicates the impact […]<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":10,"featured_media":23660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","cybocfi_hide_featured_image":"yes","footnotes":""},"categories":[82],"tags":[87,41,67,88],"class_list":["post-23579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail-media","tag-acos","tag-amazon","tag-retail-media","tag-tacos"],"yoast_head":"\nWhat Is Amazon's Aggregate TACOS? 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