CM2 ROAS measures how much variable margin (after fulfillment) you earn for every dollar spent on advertising.
CM2 ROAS = CM2 ÷ Ad Spend
| Metric | Definition |
|---|
| CM2 (After Fulfillment) | Profit after COGS, fulfillment, and transaction costs |
| Ad Spend | Total advertising spend across platforms |
| Metadata | |
|---|
| Type | Multiplier |
| Data Source | Shopify, Meta Ads, Google Ads |
| Aggregation | Ratio |
Example
Your Shopify store has $62,500 CM2 and spent $25,000 on advertising.
| Component | Value | Calculation |
|---|
| CM2 | $62,500 | Variable margin |
| Ad Spend | $25,000 | Advertising cost |
| CM2 ROAS | 2.5x | $62,500 ÷ $25,000 |
How It Works
CM2 ROAS shows how much variable margin your advertising generates. A 2.5x CM2 ROAS means every dollar of ad spend generates $2.50 in variable margin. This margin must cover marketing costs and fixed expenses to be profitable.
When to Use
| Scenario | Action |
|---|
| Measuring ad efficiency | Track CM2 ROAS for margin-aware efficiency |
| Setting ROAS targets | CM2 ROAS > 1x means ads generate positive margin |
| Comparing campaigns | Identify which campaigns deliver highest CM2 ROAS |
| Budget allocation | Shift spend toward higher CM2 ROAS channels |
| Metric | Relationship |
|---|
| CM1 ROAS | Gross margin per ad dollar |
| CM3 ROAS | Contribution margin per ad dollar |
| ROAS | Revenue per ad dollar |
