How to compare two advertising channels

Compare channels on the same sales economics. Change traffic costs and conversion rates, not the underlying assumptions.

Keep order value, variable costs, taxes, and horizon fixed for both channels. Change only what differs: CPC, conversion rates, and platform fees. Decide using contribution after advertising, not ROMI or ROAS alone.

What to consider

Use the same economic baseline; do not give one channel a better margin without evidence.
List differences: cost per click, click-to-lead and lead-to-sale conversion.
Use your own data, not market averages.

What stays the same across scenarios

Order value, variable costs, taxes, and horizon match across channels.
Use the same allowed margin share for one business decision.

What changes or is assumed

Channel differences are represented by changes to selected parameters.
One scenario is the baseline; others show sensitivity.

Calculation steps

Enter shared unit economics and baseline channel conversions.
Add CPC and conversion changes for the second channel.
Compare contribution after ads and CAC headroom.

Build the calculation in a calculator

The example also carries: Calculation horizon: first purchase (first purchase / full horizon); Taxes and fees: 0 (currency); Purchases per customer: 1 (count); Contribution share for acquisition: 30 (%); Target type: revenue (revenue / sales / customers); Revenue target: 900000 (currency).

Illustrative example: Compare channels with shared economics and 10% / 20% conversion rates

Editorial team: MARKMA Editorial Team. Reviewed: 2026-09-25.