
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 StudioSubscribe to gain access to offers, free programs, and consumer insights
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
Hereās 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
ā Build reach, introduce the brand, create memory.
2. Acquisition
Meta, Google, Amazon, Whitelisted content
ā Drive new customer growth efficiently.
3. Intent & Point of Sale
Google Search, Amazon, Retail Media
ā Capture shoppers actively ready to buy.
4. Community & Consideration
Reddit, X, LinkedIn
ā 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 donāt have the budget to do everything at once. Hereās the right way to prioritize:
If budget is small (<$25K/mo)
- Meta (core acquisition)
- Google (demand capture)
- Amazon (if applicable)
Add TikTok or Pinterest only after core performance is stable.
If budget is mid-range ($25Kā$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 ā primary driver of new customer acquisition
- 20% Google (Search + Shopping) ā high-intent capture
- 20% TikTok ā fast reach + cultural discovery
- 10% Amazon or Instacart ā in-cart conversion + ranking boost
- 5% Pinterest ā idea-based awareness (recipes, snacks, kidsā 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 isnāt ānice to haveā, itās a retention strategy for your ads.
Data + Creativity = Sustainable Growth
The strongest brands balance two forces:
1. Analysis & Reporting
You canāt scale what you canāt 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 isnāt being on every platform, itās knowing why youāre 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.

From design to launch in days with Figma Sites
Our thoughts on using Figma Sites to quickly establish a web presence in conjunction with the brand launch of Abundance Labs.

Your brand doesnāt end at checkout
Learn how to map your full brand journey, fix costly touchpoint gaps, and create a consistent experience that builds trust, loyalty, and long-term growth.

How brand strategy drives smarter performance marketing
Most brands separate performance and brand. Hereās how to integrate them to make every marketing dollar work harder.