Draft reference — content review pending
Campaign Gross Margin
The percentage of campaign revenue remaining after direct campaign costs.
Business question
What share of campaign revenue remains after direct campaign costs?
Formula
Campaign gross margin = (campaign revenue − direct campaign costs) ÷ campaign revenue × 100.
Calculation notes
Define campaign revenue, direct labor, media or production costs, contractors, pass-through costs, and treatment of shared agency costs.
Edge-case guidance
A zero-revenue campaign has no meaningful margin. A high margin may reflect omitted direct costs or under-resourcing rather than better performance.
Required data
| Input | Type | Status | Available source hints |
|---|---|---|---|
| Campaign revenueRevenue assigned to the campaign under the agreed recognition policy. | Currency | Required | Accounting software · Excel |
| Direct campaign costsDirect labor, production, media, and contractor costs assigned to the campaign. | Currency | Required | Accounting software · Project management system |
Interpretation
Use it to assess campaign economics. Keep direct campaign costs separate from shared agency overhead and interpret the result with scope, quality, and delivery effort.
Caution
Margin is sensitive to cost allocation, scope changes, and revenue timing; it is not interchangeable with company-wide Gross Margin.
Implementation recommendation
Agree on campaign boundaries and direct-cost policy before comparing campaigns or periods.
Target guidance
Set the target from comparable campaign history and protect delivery quality rather than pursuing margin through omitted costs or understaffing.