Titan AI Docs

What Titan AI means when it says ACoS

The terms that come back in answers, defined the way Titan AI calculates them.

Most of these you already know. They are here because a number is only useful if you know exactly what went into it, and because two sellers can mean slightly different things by the same word.

Advertising

TermWhat it isReading it
ACoSAd spend divided by the sales those ads producedLower is better. It says nothing about your total business
ROASThe same relationship the other way up: ad sales per unit of ad spendHigher is better
TACoSAd spend divided by all your sales, not just ad salesThe one to watch over time. Falling TACoS at steady spend means your organic sales are carrying more of the load

The distinction that matters: ACoS judges your advertising, TACoS judges your business. A campaign can have an ACoS you are happy with while your TACoS quietly tells you the brand only sells when you pay for it.

Profitability

Titan AI reports margin in three layers, each one taking more cost out than the last. This is the language Titan members are trained in, so it is worth learning in this order:

TermWhat has been taken outWhat it tells youHealthy
CM1Your landed cost: the goods plus freight to AmazonWhether the product itself makes sense70%+
CM2CM1, then Amazon's feesWhether it survives selling on Amazon, before advertising35%+
CM3CM2, then your advertisingWhat is actually left20-25%+

Advertising comes out at CM3, not CM2. That is the part worth remembering, because it is what makes CM2 useful:

Note

Your break-even ACoS is your CM2 percentage. CM2 is what is left after Amazon's fees and before a single ad dollar, so an ACoS equal to CM2% means advertising has eaten exactly the margin you had. Below it you are making money on those sales, above it you are losing money on them.

If CM2 is at or below zero, the product loses money before any advertising at all. That is an economics problem rather than a bidding one, and no bid change fixes it.

Whichever layer is weakest tells you where the work is: CM1 points at sourcing and landed cost, CM2 at fees, packaging or price, and CM3 at advertising efficiency.

Conversion

TermWhat it is
SessionsVisits to your listing
CVROrders divided by sessions
Unit session percentageUnits divided by sessions. Higher than CVR wherever people buy more than one