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What is Contributed Profit?
Sam O'Neill avatar
Written by Sam O'Neill
Updated over a week ago

“Contributed Profit” is how AdCurve measures the real profit value that each product ad has contributed to shop.

Ideally, every one of your ads should be profitable. In order for this to happen, the cost of each ad should be lower than the value that it adds to your business, allowing you to profit in your online marketing.

In order to calculate the profit of an individual product ad, we need to know:

1. The actual cost of each ad:

AdCurve collects the costs of each ad directly from the channel. This is usually done with an API to ensure that the costs are exact and updated daily. If a particular channel does not support this feature, AdCurve will use your default cost settings for the channel.

2. The margin on the orders the ad has contributed to

The margin, or profit, of an order is calculated by subtracting the floor price                from the selling price. 

3. The number of orders that the ad has contributed to

AdCurve calculates the contribution of every ad using our patented contribution algorithm. When AdCurve is notified of an order from a customer, it collects any and all associated visits, clicks, or other assistance across multiple channels and devices. Then, it calculates the value of each assisting element by comparing the journey with other customer journeys.

Contributed Profit takes all three into account and deducts the ad cost from the order margin for every order that the ad has made a contribution to. 

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