Today, we are talking about a massive misconception in the Amazon advertising world: the hyper-prioritization of Total ACoS.

First things first, I will always argue it should be called ACOTS (Ad Cost of Total Sales), but terminology aside, using this metric purely as a PPC goal is fundamentally broken.

The biggest flaw we cover in this episode is how product-level Total ACoS ruins your math, specifically because of Other SKU Sales. When you look at paid sales for a product ad, you're actually looking at sales generated for every SKU in your catalog.

Instead of making misinformed cuts, we need to think full-funnel. In this episode, I break down exactly how to approach your Amazon PPC strategy for 2026. We discuss why you must track organic visibility alongside PPC visibility, how to use your Search Query Performance dashboard to monitor market share, and why you should be evaluating your Total ACoS at the Parent-Child family level using the Purchased Product Report.

We’ll see you in The PPC Den!

🦡 Highlights ​​

• 0:00 - The hyper-prioritization of Total ACoS
• 1:58 - The evolution of Amazon PPC goals (2012 vs. today)
• 3:35 - Why TACoS is a broken metric (and why we should call it ACOTS!)
• 4:32 - Why a lower TACoS can actually mean LESS profit
• 8:50 - The absolute worst (but easiest) way to "fix" your ACoS
• 10:22 - Why product-level TACoS is mathematically broken
• 12:01 - The "Paid Sales" illusion and how ads actually work
• 13:25 - How "Other SKU Sales" are completely ruining your product-level data
• 15:30 - Real account example: What happens when 30% of sales go to other SKUs
• 17:20 - The Fix, Step 1: Thinking full-funnel & tracking organic rank
• 18:10 - The Fix, Step 2: Using Search Query Performance (Search Trends)
• 20:10 - What to do if your ACoS is actually too high
• 22:01 - The 2026 Solution: Grouping Total ACoS by Parent-Child Families

🦡 Resources & Links

• 🦡 GET AD BADGER ➡️

• Find Michael Erickson Facchin — Ad Badger’s CEO and soul, PPC whisperer, and your go-to guide through the wild world of Amazon advertising

• What is the SKU Economics Report and How It Boosts Amazon Ads?

• How TACoS Relates to Your Ad Performance

• When Higher Total ACOS Means More Profit

• 📚 Unlock our FREE comprehensive Amazon Marketing Playbook

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• Transform your workflow with our comprehensive Amazon Advertising checklist

• Review all our show notes

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Host and Executive Producer: Michael Erickson Facchin

Senior Producer: Nancy Lili Gonzalez

Podcast Coordinator & Graphic Designer: Sofiia Podash

Video and Audio Editor: Pedro Moreno