When reviewing your Amazon ad performance, it’s easy to fixate on lowering ACOS (Advertising Cost of Sales). But that alone doesn’t tell the full story. In fact, there are situations where your ACOS may increase—and that’s not necessarily a problem.
Let’s break down a few possible scenarios:
Scenario 1: ACOS Up, TACOS Up
This is the worst case. If both your ACOS and TACOS increase, it means your ads are getting less efficient, and you’re spending more relative to total revenue. This can seriously hurt profitability.
Scenario 2: ACOS Up, TACOS Flat
This situation is more neutral. It means your ad efficiency dropped, but your organic sales helped balance things out. It’s not ideal, but not a red flag either.
Scenario 3: ACOS Up, TACOS Down
Surprisingly, this is a positive sign. It means your organic (non-paid) sales are growing faster than your ad spend. In this case, ads may be working as a catalyst to drive long-term growth—even if ACOS is temporarily higher.
What Does This Mean for You?
If your total sales and organic rankings are increasing, a rise in ACOS isn’t always cause for concern. You should always monitor TACOS (Total Advertising Cost of Sales) alongside ACOS to get a complete picture of your performance.
In short, don’t obsess over ACOS in isolation. Focus on how your ads are impacting total sales and long-term growth.
When reviewing your Amazon ad performance, it’s easy to fixate on lowering ACOS (Advertising Cost of Sales). But that alone doesn’t tell the full story. In fact, there are situations where your ACOS may increase—and that’s not necessarily a problem.
Let’s break down a few possible scenarios:
Scenario 1: ACOS Up, TACOS Up
This is the worst case. If both your ACOS and TACOS increase, it means your ads are getting less efficient, and you’re spending more relative to total revenue. This can seriously hurt profitability.
Scenario 2: ACOS Up, TACOS Flat
This situation is more neutral. It means your ad efficiency dropped, but your organic sales helped balance things out. It’s not ideal, but not a red flag either.
Scenario 3: ACOS Up, TACOS Down
Surprisingly, this is a positive sign. It means your organic (non-paid) sales are growing faster than your ad spend. In this case, ads may be working as a catalyst to drive long-term growth—even if ACOS is temporarily higher.
What Does This Mean for You?
If your total sales and organic rankings are increasing, a rise in ACOS isn’t always cause for concern. You should always monitor TACOS (Total Advertising Cost of Sales) alongside ACOS to get a complete picture of your performance.
In short, don’t obsess over ACOS in isolation. Focus on how your ads are impacting total sales and long-term growth.
