Strategies to Maintain Sustainable Amazon TACoS

Is lowering TACoS the top goal in Amazon PPC? Not always. In hyper-competitive categories, chasing a low TACoS can kill long-term growth. Here's why: 🔶 You protect your profit. But lose visibility. E.g.: You keep investing in long-tail terms like "𝐩𝐥𝐚𝐬𝐭𝐢𝐜 𝐥𝐮𝐧𝐜𝐡 𝐛𝐨𝐱 𝐰𝐢𝐭𝐡 𝐬𝐩𝐨𝐨𝐧." They convert well and are cost-effective. Without using broader terms like "𝐥𝐮𝐧𝐜𝐡 𝐛𝐨𝐱" or "𝐟𝐨𝐨𝐝 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐫," your organic visibility remains low. 🔶 You reduce ad spend. But it also slows down momentum. 🔶 The strategy looks efficient. But it misses ranking opportunities that grow over time. E.g.: You decide to cut ad spend on keywords like "𝐠𝐥𝐚𝐬𝐬 𝐦𝐞𝐚𝐥 𝐩𝐫𝐞𝐩 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐫𝐬" to reduce TACoS. Looks good in your ad dashboard. But if that keyword brings high-converting traffic, pulling back might slowly drop your organic rank. 𝐇𝐞𝐫𝐞'𝐬 𝐰𝐡𝐚𝐭 𝐰𝐞 𝐬𝐞𝐞 𝐰𝐢𝐭𝐡 𝐬𝐡𝐨𝐫𝐭-𝐭𝐞𝐫𝐦 𝐓𝐀𝐂𝐨𝐒 𝐨𝐛𝐬𝐞𝐬𝐬𝐢𝐨𝐧: 🔶 Products don't break out of mid-page rankings. Even with a decent conversion rate, they lack enough traffic to climb. 🔶 Exact match dominates the strategy. There's no room for broad or auto discovery. That means missing high-potential, low-competition terms. 🔶 Spend shifts too fast from testing to what already works. Campaigns that needed more data get cut too early. 🔶 Sponsored placements become predictable. Same terms. Same formats. Same positions. Easy to block, outrank, and copy. So what's the alternative? 𝐓𝐡𝐢𝐧𝐤 𝐢𝐧 𝐥𝐚𝐲𝐞𝐫𝐬. You can still aim for healthy margins. But give specific campaigns room to rank, even if their ACoS is temporarily higher. 🔶 Use separate campaign structures for ranking and profit. Keep goals and budgets clear for each. 🔶 Run keyword discovery alongside proven terms. Broad and auto campaigns feed your future winners. 🔶 Focus on ranking terms for new ASINs. TACoS will be high in the early days, when most of your traffic comes from ads. That's normal. Focus on building organic strength. 🔶 Track organic rank weekly. If it goes up while TACoS is higher than usual, you're doing something right. Lower TACoS isn't the goal. Sustainable growth is. What's your biggest challenge when balancing TACoS and ranking growth? #AmazonAds #TACoS #AmazonMarketing #PPCStrategy #AmazonFBA #AmazonGrowth

❌If you feel like you’re bleeding money on Amazon ads, it’s not your product—it’s your system. Most sellers approach PPC the wrong way. They think throwing more money at campaigns will automatically lead to more sales. Let me share something that completely changed my strategy and scaled my brands profitably. 📊 The Key? Data-Driven Precision. Here’s what I do differently: 1️⃣ Segment Your Campaigns Like a Scientist Stop lumping all your keywords into one campaign. Break them down by performance. High-performing keywords deserve their own campaigns with dedicated budgets. 2️⃣ Launch Aggressively, Optimize Ruthlessly When I launch a new product, I go hard. But here’s the trick: within 48 hours, I’m reviewing every click and every dollar spent. If a keyword isn’t converting? Gone. If it’s borderline? Bid reduced. I don’t waste. 3️⃣ Understand the Bigger Picture (TACoS Matters) ACoS is a trap. What you really need to focus on is Total Advertising Cost of Sales (TACoS). This is how you measure whether your ads are actually growing your overall sales or just cannibalizing your organic revenue. 4️⃣ Don’t Overlook Campaign Placement Bid modifiers are your best friend. Adjust bids for top-of-search placements—it’s where conversions live. But only do this if the data tells you that placement is performing. Here’s the kicker: Amazon ads is less about spending and more about controlling. 🔧 Take Action: If this resonates with you, go to your campaigns NOW. Look at your data. Ask yourself: ✅Are my keywords properly segmented? ✅Am I tracking TACoS over time? ✅Do I know which placements are delivering ROI? If not, it’s time to rebuild. Let me know in the comments what your biggest PPC struggle is right now. I’m here to help. 💬 #AmazonPPC #EcommerceStrategy #DataOverEmotion #amazonads #amazonagency

While running Amazon ads and the Amazon business in general, the north star business metric for me has always been TACOS which is the Total Advertising Cost of Sales. Not ROAS or ACOS TACOS is basically all your ad spends as a percentage of revenue. The revenue includes both ads revenue and organic revenue. But more often than not, most Amazon teams focus only on ad revenue and ad spends, forgetting the most important part-organic revenue Very few brands would even be measuring what their organic revenue is on the platform at a keyword level. It is extremely important to take all steps that will increase organic visibility and organic sales in the platform. In fact, Amazon Pi Search Performance report gives you the SOV that you have at a keyword level for SP ads, SB ads as well as organic The lead indicator of profitability in the platform are mainly 2 things a) Increase in organic SOV in all generic keywords b) Increase in branded searches Increase in branded searches is more often than not decided by what you do outside the platform. Executing good campaigns on ATL and really good clutter breaking Meta performance campaigns often does the trick here But increasing organic SOV in generic keywords is often a result of what happens on the platform. In Amazon, whatever you do on ads also directly influences organic results. Eg. If you bid and rank top of Search on SP ads for certain keywords and your conversion rates are better than the category on those keywords, Amazon will also start ranking you on top organically for those keywords That is why I have often told that Amazon is a compounding channel and can be run profitably at scale because it rewards good performance with better organic visibility. Because of this, if you could have organic sales and directionally estimate TACOS ( not ACOS) at a keyword level, you could make a lot of optimizations on your ads as well as overall content which would benefit the business Eg: Lets say “mixer grinder 750 watt” is a keyword that I am spending money on ads. I know the ad spends, ACOS and ad driven sales on this keyword. But not how many organic sales I am getting from that keyword and is that improving with time. And since I don’t know the organic sales, I also would not know TACOS for the keyword Ideally I would want both organic SOV as well as organic sales increase for this keyword. Without it, profitability would be very difficult. Amazon doesn’t expose true organic-sales revenue at the keyword level, so any TACoS by keyword metric has to be derived The rest of the post is there in the link in the first comment. Do read and share how you do keyword level tracking of organic sales and keyword level TACOS and how you use the results

A well-executed audit can be a game-changer for your Amazon business. Here are 9 steps on what you should do to maximize your ROI and stay ahead of the curve. 👇 1️⃣ Apply the 80/20 Rule for Ad Spend Identify the top-performing 20% of your campaigns and search terms. These are likely driving 80% of your orders. Shift your budget away from the underperformers and into these high-impact areas. This will help you maintain a healthy TACoS. 🌮 2️⃣ Conduct a STIN Analysis by Mansour Use a Search Term Analyzer Sheet (STIN) to discover untapped keywords. Categorize these based on their intent for each ASIN. This will help you target your audience more effectively. 3️⃣ Launch STIN Campaigns Once you've identified key keywords, launch individual campaigns for each ASIN. This targeted approach can significantly boost your sales. 4️⃣ Optimize Coupons Regularly check and resubmit your coupons. This ensures that they are aligned with consumer demand and maximizes their redemption rate. 5️⃣ Revamp Your Listing SEO Update all product listings with SEO-friendly content. Use data dive sheets by Brandon Young and Helium 10 to identify areas for improvement and implement changes accordingly. 6️⃣ Monitor Ranking SKCs Keep an eye on impression share reports and SQP data. If certain campaigns are consuming too much of your budget, consider reducing their spend while monitoring for any loss in impression rate (IR) or purchase share. 7️⃣ Reallocate Budget Strategically If you notice a dip in Conversion Rate, especially during big events like Prime Day, reallocate your budget to campaigns and keywords that have historically performed well. 8️⃣ Plan to Lower TACoS Draft a comprehensive plan aimed at reducing your TACoS. This ensures that your ad spend is not just high, but also efficient. 9️⃣ Analyze Keyword Performance Conduct a thorough review of your historical keyword data. Focus on those with a strong track record and allocate more resources to them. You can use SUPA sheets by Mansour Norouzi or Data Dive sheets. By following these steps, you're not just reacting to market changes; you're proactively setting yourself up for success. Questions? Feel free to reach out. Cheers! Amir #amazon #amazonppc #amazonfba #amazonadvertising

3 7-figure Amazon sellers said the exact same thing to me last week: “My TACoS is way too high, and I don’t know what to do.” The issue is: -Campaigns are bloated with too many targets. -Ad spend is scattered across underperforming match types. -SD and SB campaigns are eating the budget. -Top-performing targets are competing with irrelevant ones in the same ad groups. We recently helped another 7-figure seller facing similar issues cut wasted spend by 35% in just 60 days. So I wanted to share what’s been working… Here’s what we’re doing: You have to audit ad spend data to get more profit and better TACoS. When you try to fix TACoS, you’ll get stopped by: -Targets that look profitable but aren’t (check CVR and ACoS). -High bids in auto campaigns eating up your budget. -Poorly optimized SD and S B ads draining spend. -Too many targets in one ad group causing wasted ad spend. Instead, to lower TACoS and increase profitability: Reorganize your campaigns and reallocate ad spend strategically. Some examples: -Remove targets with 20+ clicks (~ 5% CVR) and no sales (this freed up $44k in a recent account audit). -Use phrase and exact match types to focus on high-converting keywords. -Pause poor-performing targets to stop unnecessary spending. -Split large ad groups into smaller, more targeted ones for better control. Reduce bids for low-performing ROS placements. Shift budgets toward your best-performing products. Test this. Simplify your campaigns. Decrease your wasted spend. #7FigureSellers #ScalingAmazonBusiness #AmazonBusinessGrowth #AmazonPPC #MillionDollarBrands #Profitability #PrivateLabelSuccess #EcommerceScaling

One of the biggest things crippling Amazon businesses right now: Too much ad spend going to branded traffic. 🚫 What’s the root cause? An obsession with a vanity metric — ACOS. Business owners love ACOS because it looks good. But ACOS is easy to manipulate: - Run pure branded ads - Turn on vCPM - Cut a majority of non-branded acquisition Suddenly, you’ve got a “great” ACOS — but your business isn’t growing. Here’s what to actually focus on 👇 1️⃣ TACoS > ACOS - TACoS shows up on your P&L. It’s what actually impacts profit. 2️⃣ Branded vs. Non-Branded - Branded ACOS will always look better. Non-branded drives growth. Understand the difference — and track both separately. 3️⃣ Early Stage Reality - When you’re starting out, you have no branded search. - Your ACOS will be sky-high. That’s normal. - As you build repeat buyers + word of mouth → ACOS naturally comes down. 4️⃣ Growth Mindset - You can’t grow by only acquiring the same customers. - You must invest in new-to-brand traffic, even if it means higher ACOS and TACoS in the short term. If total profit dollars increase at higher spend — that’s a win.   5️⃣ Organic Rank - Once you start appearing ToS on Page 1 your TACOS will come back down as organic sales go up, profit increases further.   When done right, rising ACOS or TACoS can actually be a sign of growth — not failure. Play for the long term. Acquire new customers. Rank organically. Then watch your TACoS drop and your business compound. That’s how you build a machine that makes you millions over time. #Amazon #ecommerce #digitalmarketing #digitaladvertising #PPC