Insights, card by card Answer 5 of 12 Updated

What does each card on the Marketing tab mean, from ad spend to POAS?

The Marketing tab shows what your marketing cost and whether it paid off. Open Insights and click Marketing. Every card covers the dates you pick at the top of the page. All figures are blended: all your spend together, set against all your sales. nouz makes no guess at which ad caused which sale.

Four figures sit at the top. Marketing Costs is all your marketing spend: Meta, Google and TikTok, plus spend you typed in or uploaded as a file. It is line 27 of your P&L. Blended MER is your Net Revenue divided by Marketing Costs. Net Revenue is what you keep from sales after refunds and VAT. €30.000,00 of Net Revenue on €10.000,00 of spend is a MER of 3,00. Blended CAC is Marketing Costs divided by your new customers. €10.000,00 for 400 new customers is a CAC of €25,00. Conversion rate is orders divided by visits to your store.

The badges compare each figure with the same number of days just before. For Marketing Costs and Blended CAC, a rise shows red. A badge in pp is a change in percentage points.

Spend by source is a ring of your spend, one slice per source: Meta Ads, Google Ads, TikTok, Manual spend and CSV imports. Manual spend is spend you typed in, including Marketing spend added on the Overhead page. The middle shows the total. Three figures sit under the ring. The first, of Net Revenue, is your marketing as a share of Net Revenue. Then come MER and POAS for the whole range. POAS is CM2 divided by Marketing Costs. CM2 is what orders leave after product, shipping and payment costs.

Ad spend over time stacks your spend per day, week or month, one colour per source. The dashed line is MER for each point. Rising bars under a falling line mean each extra euro brings back less.

Profit on ad spend is the card that says whether ads pay. The grey bars are ad spend and the green line is POAS. The dashed line, Break even 1,00, is where one euro of ads came back as one euro of CM2. Above it your ads add profit. A red dot marks a day, week or month below it. A gap means no spend, or a CM2 at or below zero, where the ratio would mislead.

Three figures sit under it. POAS is CM2 per euro of ad spend for the whole range. Break-even MER is Net Revenue divided by CM2: below that MER, your ads lose money. CM3 is CM2 minus marketing: what is left after your ads. An example: Net Revenue of €30.000,00 and CM2 of €12.000,00 give a Break-even MER of 2,50. Spend €10.000,00 and your MER is 3,00, above 2,50. POAS is 1,20 and CM3 is €2.000,00.

Traffic and conversion shows Sessions as bars, meaning visits to your store. The dashed line is the share of visits that ended in an order. Hover a bar to see the orders too. Sessions come from Shopify's traffic reports. The Revenue tab shows the same figures, with totals for the whole range.

Acquisition and CAC shows new customers as bars and Blended CAC as a line. A new customer is someone placing their first order with you. A rising line means each new customer costs you more.

New vs repeat orders splits each point's orders between New customers and Repeat customers, as shares of 100%. A growing repeat share means you rely less on ads to win every order. Orders without a customer account are left out. The Customers tab goes deeper.

Revenue & marketing development draws Net Revenue against Marketing Costs. Switch on Cumulative to watch both totals build up over the range. Spend that no platform reports, like an influencer, belongs in Marketing spend on the Overhead page. Without it, every ratio on this tab looks better than it is.

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More in Insights, card by card

All 12 questions
  1. 03 What does each card on the Inventory tab mean?
  2. 04 How does the reorder planner decide what to order, with stock on its way?
  3. 05 What does each card on the Marketing tab mean, from ad spend to POAS? You are reading this
  4. 06 What does each card on the Returns tab mean, from refunds to chargebacks?
  5. 07 What does each card on the Customers tab mean?

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