Retail Media Co-Op Margin Forecaster

Evaluate whether a retail media push will expand or erode contribution by pairing your budget, retailer co-op match, incremental sales, and margin profile in one forecast that surfaces ACoS, ROI, and how platform fees impact profitability.

Brand-funded retail media spend committed for the campaign.
Percentage match the retailer adds on top of your budget.
Attributed lift in revenue from the campaign versus the baseline.
Product gross margin after cost of goods, before media spend.
Default 0. Use to account for platform fees on incremental sales if the network takes a percentage.

Validate lift and margin figures with retailer portals and your finance team before locking spend decisions.

Examples

  • Budget $250,000, match 50%, incremental sales $1,150,000, margin 32% ⇒ Net contribution gain $118,000.00, total media $375,000.00, ACoS 21.74%, ROI 47.20%.
  • Budget $90,000, match 20%, incremental sales $260,000, margin 24%, fee 5% ⇒ Net contribution loss -$40,600.00 with ACoS 34.62% versus a 24.00% break-even and ROI -45.11%.

FAQ

How do I account for vendor chargebacks or accrual true-ups?

Include them in the optional network fee percentage or reduce the projected incremental sales to reflect expected chargebacks before running the forecast.

Can I model halo sales outside the retailer?

Yes. Increase the incremental sales input to include estimated halo lift, or run a second scenario that layers halo sales on top of retailer-reported lift.

What does a positive ROI mean here?

A positive ROI indicates contribution dollars after network fees exceed your brand-funded spend, meaning the co-op campaign expanded profit versus the baseline.

How should I use the break-even ACoS output?

Compare it against your actual ACoS to decide if you need higher conversion, better targeting, or additional co-op funding to hit profitability targets.

Additional Information

  • Retailer co-op funds are treated as incremental media dollars that do not reduce the brand's own budget outlay.
  • Gross margin dollars are calculated on incremental sales before media and fee deductions to isolate contribution impact.
  • Network fees, when provided, are subtracted from incremental sales to reflect platform take rates.
  • Advertising cost of sales (ACoS) compares your brand spend to incremental sales, while break-even ACoS equals your gross margin percentage.
  • Use the ROI output to stack-rank channels: a positive ROI indicates the campaign returned more incremental contribution than the cash your brand invested.

Related calculators