Retail Media Margin Assurance Calculator

Validate that retail media profits hold after subtracting cannibalised margin, platform fees, and fulfillment costs. Provide monthly ad revenue, margin erosion, fee percentage, and fulfillment impacts to see net contribution dollars and the resulting contribution rate.

Gross ad revenue credited to your retail media program.
Contribution margin lost due to promotional pricing or cannibalised sales.
Percentage of ad revenue paid to adtech partners and marketplaces.
Incremental fulfillment, returns, or customer service costs linked to the ads.

Outputs assume linear attribution between ads and downstream orders. Pair with incrementality studies before adjusting spend commitments.

Examples

  • $620,000 revenue, $150,000 erosion, 18% fees, $40,000 fulfillment ⇒ Fees total $111,600.00 and net contribution remains $318,400.00 for a 51.35% contribution rate.
  • $280,000 revenue, $110,000 erosion, 22% fees, $28,000 fulfillment ⇒ Net margin falls to $80,400.00 and contribution rate slips to 28.71%, signalling caution.

FAQ

Should I include media rebates?

Subtract rebates from margin erosion or fulfillment costs so the calculator reflects net economics after incentives.

How often should I update fee percentages?

Refresh the fee input whenever marketplace agreements change or when onboarding new adtech vendors.

Can I model multiple regions?

Run the calculator for each market and sum the net contributions to see consolidated profitability.

Additional Information

  • Platform fees are calculated as a percentage of gross retail media revenue.
  • Margin erosion should include discounts, promo funding, or cannibalised organic sales attributed to the media program.
  • Fulfillment drag captures higher shipping, returns, or support costs triggered by incremental orders.
  • Contribution rate equals net contribution divided by ad revenue to reveal percentage lift retained after costs.

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