Marketing Cost Per Order measures the average marketing spend allocated to each attributed order.
Marketing Cost Per Order = Total Marketing Cost ÷ Orders
| Metric | Definition |
|---|
| Total Marketing Cost | Sum of all ad spend allocated to orders |
| Orders | Total number of attributed orders |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Meta Ads, Google Ads, TikTok Ads, Shopify |
| Aggregation | Average |
Example
Your Shopify store spent $30,000 on marketing and generated 1,500 attributed orders.
| Component | Value |
|---|
| Total Marketing Cost | $30,000 |
| Orders | 1,500 |
| Marketing Cost Per Order | $20.00 |
How It Works
Marketing Cost Per Order divides total marketing spend by attributed orders. This metric helps you understand how much ad spend is required to generate a single conversion. It factors into CM3 calculations and is essential for evaluating marketing efficiency.
Marketing cost includes spend from all connected ad platforms (Meta, Google, TikTok, etc.) allocated via your attribution model.
When to Use
| Scenario | Action |
|---|
| Evaluating marketing efficiency | Lower Marketing Cost Per Order = more efficient |
| Setting CPA targets | Use as baseline for cost-per-acquisition goals |
| Comparing channels | Identify which channels deliver lower cost per order |
| Protecting CM3 margins | Ensure Marketing Cost Per Order leaves acceptable margin |
| Metric | Relationship |
|---|
| New Customer Marketing Cost Per Order | Marketing cost for first-time buyers |
| Returning Customer Marketing Cost Per Order | Marketing cost for repeat buyers |
| Marketing Cost % | Marketing as percentage of revenue |
| CM3 Per Order | Margin after marketing |
