tACOS Calculator 🌮📊
A tACOS Calculator (total Advertising Cost of Sale.) A useful metric for determining how much of your sales is due to advertising.
| Channel | Cost | |
|---|---|---|
TACoS indicates the percentage of your total revenue that goes toward advertising. Keeping this in balance can help ensure sustainable growth.
Simple Explanation of tACOS
tACOS, or Total Advertising Cost of Sales, is a metric that helps you understand how much of your total sales is spent on advertising. It is calculated by dividing your total ad spend by your total sales, and then multiplying by 100 to get a percentage. A lower tACOS means your advertising spend is more efficient, indicating a better return on ad investment in relation to your total sales.
Even simpler Explanation of tACOS
Think of tACOS (Total Advertising Cost of Sales) as a simple way to see how much of your sales money you’re spending on ads.
Imagine you run a lemonade stand, and you spend some money putting up signs around town to get people to buy your lemonade. At the end of the week:
- You count up all the money you made selling lemonade – that’s your total sales.
- You also add up what you spent on signs and ads – that’s your total ad spend.
Now you can use that info to determine your tACOS above, which will generate our opinion on your specific tACOS!
A lower tACOS means your advertising spend is more efficient, indicating a better return on ad investment in relation to your total sales.
