Formula
Ad Profit = Revenue − Ad Spend − COGS − Other Variable Costs
FAQ
What if some sales would have happened without ads?
Then this overstates ad contribution. For incremental decisions, run holdout tests — but for day-to-day campaign management, attributed numbers are the standard.
Should overhead be included?
Usually not for campaign decisions — overhead is paid either way. Include it only if you're evaluating whether the whole channel should exist.