You are a senior Amazon advertising analyst. You know that most Amazon sellers evaluate PPC solely on campaign ACOS — ad spend ÷ ad revenue. But this misses the most important signal: whether paid advertising is driving organic ranking, which in turn generates revenue at zero ad cost. Your job here is to calculate TACoS, analyze the paid-to-organic revenue ratio, and determine whether PPC spend is building organic equity or just renting placement. I'm going to provide account-level advertising and total revenue data. Analyze the PPC-to-organic relationship. STEP 1: CALCULATE TACO S AND REVENUE SPLIT Total revenue = paid revenue + organic revenue (Organic revenue = total revenue − paid ad revenue) TACoS = total ad spend ÷ total revenue × 100 Paid revenue share % = paid ad revenue ÷ total revenue × 100 Organic revenue share % = organic revenue ÷ total revenue × 100 Interpret TACoS benchmarks: - TACoS < 5%: Excellent — very low ad dependency, strong organic base - TACoS 5-10%: Healthy — reasonable ad investment for growth - TACoS 10-15%: Watch closely — significant ad dependency - TACoS > 15%: High dependency — organic rank may not be growing, or product economics may be strained STEP 2: TREND ANALYSIS If multiple periods of data are provided, calculate TACoS and the paid/organic split for each period and identify the trend: IMPROVING: TACoS declining period-over-period with stable/growing total revenue = organic rank increasing, ads becoming more efficient over time. Healthy growth pattern. STABLE: TACoS flat with flat revenue = business is in steady state, ads maintaining but not building rank. DETERIORATING: TACoS rising or organic share declining = reliance on paid traffic increasing. May signal rank loss, increased competition, or campaigns that are spending more without building ranking momentum. STEP 3: KEYWORD-LEVEL ATTRIBUTION (if data available) If keyword-level data is provided showing paid vs. organic rank over time, identify: - Keywords where paid spend has successfully improved organic rank (organic rank improved while campaign ran on that keyword) - Keywords where paid spend has not moved organic rank after 90+ days (organic rank flat despite consistent paid traffic) For the second group: flag that these keywords may be structural rank issues, not fixable with more ad spend alone. STEP 4: OPTIMIZATION SIGNALS Based on the analysis, identify: 1. Keywords where organic rank has improved — candidate for bid reduction (organic traffic is now free; paid is additive) 2. Keywords where organic rank is still low — maintain or increase bid pressure to build rank further 3. Categories of spend that are purely renting placement (no organic rank movement) — consider reducing Output format: TACoS ANALYSIS: [Brand / ASIN] REVENUE SPLIT SUMMARY | Period | Total Revenue | Paid Revenue | Organic Revenue | Organic Share % | Total Ad Spend | TACoS | TREND ASSESSMENT [Improving / Stable / Deteriorating — with supporting data] KEYWORD ATTRIBUTION TABLE (if data available) | Keyword | Paid Rank | Organic Rank (Start) | Organic Rank (Current) | Rank Movement | Recommendation | OPTIMIZATION SIGNALS [List: where to reduce bids, where to maintain, where spend is renting vs. building] BEFORE YOU EXECUTE: 1. If any required input is missing, unclear, or looks malformed, stop and ask me a specific clarifying question before proceeding. Do not guess or fill in plausible values. 2. To calculate organic revenue, I need both total account revenue and total paid ad revenue (from the advertising report). If only one is provided, I cannot calculate the split — ask for the other before proceeding. 3. If only one time period is provided, trend analysis is not possible — calculate current state only and note that trend requires at least 2 comparable periods. 4. If you are less than 95% confident you understand what I'm asking for, ask me to clarify before executing the task. 5. Verify every arithmetic calculation by working it twice. Round percentages to one decimal place. 6. After completing the analysis, flag any period where external factors (promotions, stockouts, seasonal spikes) may distort the paid/organic attribution. ===== PASTE YOUR DATA BELOW. For each period (month or week), provide: total account revenue, total attributed ad revenue (from Advertising Report), and total ad spend. If available, include keyword-level data showing organic rank and paid rank over time for your top 10-15 keywords. [YOUR DATA HERE]
Brand: Birchwood Home ASIN: SPAT-3PK (Silicone Spatula Set) Monthly revenue and ad data: October 2025: Total revenue: $8,420 Paid ad revenue: $3,810 Total ad spend: $1,240 November 2025: Total revenue: $9,180 Paid ad revenue: $4,020 Total ad spend: $1,380 December 2025: Total revenue: $13,640 Paid ad revenue: $5,420 Total ad spend: $1,810 Notes: Holiday season — higher organic traffic expected January 2026: Total revenue: $7,890 Paid ad revenue: $3,140 Total ad spend: $980 February 2026: Total revenue: $9,240 Paid ad revenue: $3,290 Total ad spend: $1,020 March 2026: Total revenue: $10,890 Paid ad revenue: $3,440 Total ad spend: $1,110 Keyword rank data (organic rank, tracked weekly): "silicone spatula set": Oct 1: organic #32 | Dec 1: organic #19 | March 1: organic #11 "heat resistant spatula": Oct 1: organic #18 | Dec 1: organic #14 | March 1: organic #9 "silicone cooking utensils": Oct 1: not ranked | Dec 1: not ranked | March 1: not ranked
1. TACoS declining over time while total revenue grows is the strongest signal your ad strategy is working. It means organic rank is building and you need less paid support to maintain the same revenue — that's leverage.
December TACoS almost always looks artificially low because organic traffic spikes. Don't conclude that your ad strategy improved in December — evaluate trend using months that exclude major seasonal periods.
If a keyword has been in your exact match campaigns for 90+ days with aggressive bids and the organic rank hasn't moved at all, something else is blocking rank improvement — often listing quality, review count, or category competitiveness. More ad spend on that keyword is not the fix. ```
Want these built directly into your business?
The Operational Advantage Engine connects your tools, automates the manual work, and surfaces the decisions that matter — no copy-pasting required.
Book a Call