Total advertising cost of sales

Total advertising cost of sales, usually TACoS, compares advertising expenditure with total revenue within a defined scope, including revenue not attributed to ads. This differs from ACoS, whose denominator is attributed advertising revenue only.[1] The broader advertising-to-sales ratio likewise relates total advertising expenditure to revenue.[2]

In a hypothetical example, €200 of ad spend against €2,500 of total revenue gives a TACoS of 8%. Keep periods, store or product scope and revenue treatment consistent. A decrease may reflect more unpaid sales, less advertising or a changed sales mix. The ratio does not itself establish profit or how much additional revenue advertising caused.