What is profit after marketing?
Profit after marketing shows whether a sale was worth it, including what you spent to win it. If it is positive, the sale contributed to your fixed costs and your profit. If it is negative, you bought revenue.
How do you calculate it?
Take profit after order costs and subtract ad spend. For the whole store that is simple. Per campaign or product, you need to know which orders and which ad spend belong together.
Example: the orders from a campaign leave €2,000 together after order costs. The campaign cost €1,000. Profit after marketing is €2,000 − €1,000 = €1,000.
What to watch out for
Not every order comes from an ad. If you subtract all ad spend from all orders, you see an average. If you calculate per campaign, you need a choice about how orders are credited to campaigns: that is attribution.
In Ecommy
Ecommy calculates profit after marketing per campaign, product and channel, with the attribution you agree on during intake.