Advertising Efficiency

Urban Runner

HIGH IMPACT

What is happening

At the current CAC of $18.40, Urban Runner's ad-attributed orders generate $7.20 in contribution profit per order — a 11.1% contribution margin, below your 15% target.

Why it matters

Contribution profit hits zero once CAC reaches $25.60 — that's the break-even point. To reach your 15% target margin, CAC needs to come down to $15.87 instead.

What ProfitDetect recommends

Reduce target acquisition cost from $18.40 toward $15.87 by tightening ad targeting and pausing underperforming placements.

Store economics behind this recommendation

Current CAC: $18.40
Contribution profit/order: $7.20
Break-even CAC: $25.60
Target CAC for your 15% target margin: $15.87
Paid orders analyzed: 84

Break-even CAC is the acquisition cost at which contribution profit per order hits zero — spend more than that on ads for this product and each ad-attributed order loses money. Your 15% target contribution margin (set in Settings) implies a lower CAC of $15.87 — that's the number this recommendation is measured against, not an industry average.

How this is calculated

Break-even CAC =

Selling Price − COGS − Payment Fees − Shipping

Target CAC subtracts your target contribution profit (Price × Target Margin %) from that same break-even point.

CAC scenario analysis (simulation)

Target CACAdjustable

CURRENT CAC

$18.40 CAC

Contribution profit/order$7.20

Contribution margin11.1%

Monthly contribution profit$605

TARGET CAC

$15.87 CAC

Contribution profit/order$9.73

Contribution margin15.0%

Monthly contribution profit$817

OPTIMISTIC CAC

$14.61 CAC

Contribution profit/order$11.00

Contribution margin16.9%

Monthly contribution profit$924

These are simulated scenarios based on your store's own economics — ProfitDetect does not guarantee any particular CAC is achievable. Monthly figures assume the 84 ad-attributed orders/month analyzed above stay constant.

Estimated financial impact

+$213/month

Confidence: HIGH

Data supporting this recommendation: Based on 84 ad-attributed orders during the last 30 days with complete cost data.