Get better TACoS: How to make the most of your ad budget

How to choose the right channels, build a smart marketing mix, and avoid wasting your ad budget

by Fonder Studio
Nov 24, 2025
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Digital advertising can scale a brand fast, but it can burn money even faster. The difference comes down to strategy: choosing the right channels, aligning them to your goals, and understanding what role each platform plays in your broader growth ecosystem. When brands skip the strategy step, performance stalls, budgets balloon, and the path to profitability gets muddy.

This guide breaks down how to choose the right ad channels based on your goals, how to structure a high-performing media mix (even if your budget is limited), and why a disciplined approach to data and creative iteration is the key to long-term, profitable growth.

What is TACoS?

TACoS stands for Total Advertising Cost of Sales, a metric that shows how much of your overall revenue is being spent on advertising. Unlike ROAS, which only looks at the return from paid ads, TACoS reveals whether your advertising is actually helping your business grow profitably over time. A rising TACoS typically signals inefficiency or creative fatigue, while a stable or declining TACoS shows that ads are supporting both paid and organic sales in a healthy way.

Start with the goal, not the channel

Before you decide where to spend, get clear on why you're spending.

Are you trying to:
  • Grow awareness and reach new people?
  • Drive first-time purchases efficiently?
  • Capture high-intent shoppers comparing options?
  • Influence retail performance?
  • Improve retention and repeat purchases?

Different goals require different channels. The fastest way to waste money is to push a bottom-of-funnel goal on a top-of-funnel channel (or vice versa).

Understanding what each channel does best

Here’s the simplest way to understand the roles of the major platforms:

Every channel is a tool. The power comes from using the right tool for the right job.

Building a smart, goal-aligned media mix

A healthy media mix is layered. Each channel serving a defined role across the funnel:

1. Awareness

TikTok, YouTube, Pinterest, CTV
→ Build reach, introduce the brand, create memory.

2. Acquisition

Meta, Google, Amazon, Whitelisted content
→ Drive new customer growth efficiently.

3. Intent & Point of Sale

Google Search, Amazon, Retail Media
→ Capture shoppers actively ready to buy.

4. Community & Consideration

Reddit, X, LinkedIn
→ Add trust, depth, and credibility.

When each channel has a purpose, your dollars compound instead of compete.

When you can't fund a full media mix

Most brands don’t have the budget to do everything at once. Here’s the right way to prioritize:

If budget is small (<$25K/mo)
  1. Meta (core acquisition)
  2. Google (demand capture)
  3. Amazon (if applicable)

Add TikTok or Pinterest only after core performance is stable.

If budget is mid-range ($25K–$100K/mo)

Meta + Google + TikTok + Amazon
Then layer in Pinterest, influencer amplification, and CTV as needed.

If budget is large ($100K+/mo)

Now you can build a true flywheel:
Meta + Google + TikTok + Pinterest + Amazon + YouTube + CTV + Retail Media + community channels.

Coverage, diversification, and compounding effects kick in here.

Example: A clean-ingredient snack brand aiming for Gen Z + Moms

Goal:

Profitable acquisition + long-term brand building

Budget:

~$40K/mo

Ideal Mix:
  • 45% Meta – primary driver of new customer acquisition
  • 20% Google (Search + Shopping) – high-intent capture
  • 20% TikTok – fast reach + cultural discovery
  • 10% Amazon or Instacart – in-cart conversion + ranking boost
  • 5% Pinterest – idea-based awareness (recipes, snacks, kids’ lunches)

This is lean, strategic, and built to compound over time.

The Silent Killer of Performance: Stale Content

Even the perfect media mix falls apart if the creative goes stale.

Why?
  • Audiences fatigue
  • Algorithms deprioritize old creative
  • Relevance drops
  • Costs rise
  • Conversion efficiency tanks

Stagnant creative is one of the biggest causes of inflated TACoS and rising CACs (Customer Aquisition Cost), especially for Amazon and retail media.

Innovation isn’t ā€œnice to haveā€, it’s a retention strategy for your ads.

Data + Creativity = Sustainable Growth

The strongest brands balance two forces:

1. Analysis & Reporting

You can’t scale what you can’t measure.
Brands should review:

  • Impact by channel
  • Creative-level conversion drivers
  • Incrementality
  • Cost per acquisition by audience
  • Performance over time, not in isolated snapshots

This is how you know where dollars actually work, and where to shift spend.

2. Creative Testing & Iteration

Listen to what works, then lean in.
But never stop experimenting.
New formats, new hooks, new stories, new angles.

Your best-performing creative today will not be your best-performing creative next quarter.

The formula is simple:
Double down on winners + constantly introduce new surprises.

This keeps your audience engaged, your channels efficient, and your TACoS under control.

Final Thought: The Strategy Is the Advantage

The real advantage isn’t being on every platform, it’s knowing why you’re on each platform, what role it plays, and how to fuel it with creative that keeps earning attention.

When goals, channels, data, and content all work together, your ad spend becomes a growth engine, not a gamble.