1. Ensure Your Advertisement Data Is Synced
If your ad data needs to be refreshed, you’ll see a notification inside the Advertisement tab prompting you to resync.
How to Resync Your Ads Data
Download the ProfitTree Chrome Extension
Open your ProfitTree Chrome Extension.
Look for the sync button (it will appear if syncing is needed).
If the extension says “All synced — your data is up to date,” your numbers in ProfitTree are current.
Keeping this synced ensures your ad performance analytics are accurate.
2. The Most Important Metric: TACoS
Inside the Advertisement tab, the most valuable column is TACoS, which stands for Total Advertising Cost of Sale.
What TACoS Means
TACoS measures the percentage of total listing revenue (paid + organic sales) that is being spent on ads.
Formula:
Advertising Spend ÷ Total Sales = TACoS %
Why TACoS Matters
It shows the true profitability of a listing after ads.
It helps you decide which ads to keep running and which ones to pause.
A lower TACoS indicates more profit.
Your goal:
➡️ Keep TACoS as low as possible while maintaining healthy sales.
3. Choosing the Right Time Range for Analysis
Your ideal time window depends on:
How fast your ads spend
How quickly your listings generate sales
Examples:
High-ticket items: Spend slowly → analyze larger windows (60–90 days+)
Low-cost digital downloads: Spend fast → analyzing 30 days may be enough
4. How to Determine Your Target TACoS Threshold
How to set your TACoS goal
Every shop has a different “safe” TACoS percentage — because the right TACoS depends on how much profit margin you have available.
A simple way to set your TACoS goal is:
Your TACoS should not exceed the profit you’re willing to spend on marketing.
A Clear Rule of Thumb
Start by looking at your Profit % before ads in your ProfitTree Listing report (ProfitTree calls this your profit before marketing costs).
Then decide what profit margin you want to keep after ads.
For example if your profit before ads is 40% and you want to maintain a profit of 20% or greater after the ad spend, then your TACoS should not exceed 20%.
Profit % before ads: 40%
Desired profit after ads: 20%
That means you can afford to spend up to 20% of revenue on ads while still maintaining your target profit.
✅ Target TACoS Threshold: 20%
Why This Matters
If TACoS goes above your threshold, ads are eating too much of your margin — and the listing becomes less profitable.
How to Use This in ProfitTree
Once you know your TACoS target, you can:
Keep scaling listings that stay under that percentage
Tighten your TACoS goal over time to increase profit
Turn off or adjust ads for listings that consistently exceed your threshold
5. Analyzing TACoS Over Different Time Periods
Before making decisions, always compare TACoS across multiple windows.
Example Scenario
A listing shows:
40% TACoS in the current 3 months
→ High, and a red flag.
But you must also check:
Profit margin before ads
Whether this TACoS is rising, falling, or stable over time
6. Step-by-Step: How to Evaluate a Listing
Step 1: Adjust your time window
Set the calendar to a 3-month period (or longer if needed).
Step 2: Check the listing’s TACoS
Example:
TACoS = 36% (last 3 months)
Step 3: Open the listing to check the pre-ads profit margin
Example:
Pre-ads profit = 58%
Step 4: Calculate post-ads profit
58% (profit margin)
− 36% (TACoS)
= ~22% net profit➡️ Still profitable. You may choose to keep this listing running.
7. When to Turn Off a Listing
Here’s an example where the numbers tell a different story:
Listing B:
TACoS: 40%
Pre-ads margin: 48%
Net profit: Only ~8%
➡️ This listing is no longer healthy.
The ad spend is eating nearly all profit, so turning off this listing is recommended.
8. Compare Current TACoS to Past TACoS (Trend Analysis)
This step is crucial and often overlooked.
Why trends matter:
A listing might show high TACoS now, but:
If TACoS is decreasing, it could be improving → keep it on.
If TACoS is increasing sharply, the listing may be dying → turn it off.
Example from the transcript:
June–Sept TACoS: 22%
Sept–Dec TACoS: 40%
This is a dramatic increase, meaning:
Conversion rate is dropping
Listing may be losing relevance or competitiveness
Continuing to advertise it is likely wasting budget
➡️ Decision: Turn this listing off and redirect spend to stronger performers.
9. Understanding Listing “Lifespans”
It’s normal for listings to:
Perform well initially
Decline over time
Lose ad efficiency as trends fade
ProfitTree helps you identify these shifts early by:
Showing long-term TACoS changes
Showing profit margins before ads
Comparing performance across time windows
10. Final Takeaway: How to Maximize Your Ad Profit
By analyzing:
TACoS
Profit margins
Multi-month trends
You can ensure:
Every dollar spent on ads is producing a healthy profit
Your budget flows toward high-return listings
Poor-performing or declining listings don’t drain your ad budget
Ready-to-Use Checklist
✔️ Sync your ads data
✔️ Set a target TACoS based on your shop’s profit
✔️ Analyze 30–90 day windows
✔️ Compare TACoS vs. pre-ads profit
✔️ Turn off listings where TACoS eats the margin
✔️ Review TACoS trends over multiple time periods
✔️ Reallocate budget toward listings with the highest ROI