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The Truth About TACOS: What Advertisers Need to Know
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This week on The Ad Project, Joe Shelerud and Matt Wiklund take a pragmatic look at the world of advertising metrics - specifically TACOS. Joe has reservations about TACOS, and he'll explain why. Matt, on the other hand, sees its merits as a budgeting tool.
Here's what you can expect:
- TACOS, which measures ad spend as a percentage of total sales, is introduced, and Joe raises some concerns about its usefulness.
- Joe argues that TACOS can be manipulated by advertisers and lacks a comprehensive view of advertising performance.
- Matt highlights TACOS' value as a metric for maintaining budget consistency, especially during seasonal fluctuations.
They both agree that while TACOS serves a purpose, it's not the sole metric to consider. ACoS, new-to-brand customer acquisition, lifetime value, and market share provide a more complete picture of advertising success.
Joe and Matt recommend looking beyond TACOS and considering a broader range of metrics to evaluate advertising performance. For a deeper dive into this topic and a nuanced discussion on advertising metrics, listen to the full episode!
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