Payback Period

In the Payback Period chart, you can see how long it takes for an amount paid for an ad to be returned as revenue. The chart compares daily ad spend with the revenue generated and the time lag between the click and the order, from orders attributed to these channels and ads.

How to read the Chart

Each row of the Payback Period chart represents 1 day
Sessions is a web visit. It counts the number of sessions for that day. This is from Shopify
Total spend - this is the total that was spent on your marketing channels. This will depend on which ad spend accounts are connected to Peel
Each column after that is a day (D1, D2, D3, etc.) showing the profit by taking the revenue associated with the orders that were driven from those campaigns minus the ad spend
Days with dark red are the least profitable and days that are dark green are the most profitable

What this means is that on Sept. 24th you spent $678 on ads that resulted in 14 sessions.
Day 1 here is red because the revenue from the first order did not cover the amount spent on ads ($678). On Day 2, the chart is still in the red at $100 and on Day 3 is green as the marketing performance is positive at $165. This shows that it took 3 days to be profitable.
Sometimes, it takes a bit of time for visitors to your site to come and make a purchase and a profit is not shown on D1 (and sometimes never). When you have a web session, we know where the visitor came from, but not all web sessions translate into payment. A visitor can go to a site, look at the products, and not buy anything. They can return the next day directly, by email, or another ad. They can fill their shopping cart and still not buy anything. They can come back a week later and finally, they buy something. That would mean that on Day 7, that revenue is finally counted against that ad spend.

Filters you can use on the chart:

  • Metric
    • Marketing Profit: revenue (from Shopify) minus ad spend (from connected ad spend platform)
    • Revenue: the total sales (gross sales - discounts - returns + taxes + shipping charges)
    • Profit Margin: a percentage of the profit (ad spend minus total sales)
  • Attribution Model
    • Linear: a multi-touch attribution that takes into account all events or touchpoints along the customer journey
    • First Touch: customers' first-ever visit to the site
    • Last Touch: the latest visit the customer makes before the purchase
  • Channel
    • Peel defined mapping of the most common traffic sources for easier analysis. All channels are related to marketing activity only (subscription, direct traffic, etc. are not included here)
      • All channels
      • All marketing channels
      • All paid channels: traffic attributed to paid Facebook, paid Google, paid TikTok
      • Google Paid
      • Facebook Paid
      • TikTok Paid
  • UTM Source
    • The utm_source URL parameter of the session if one was defined in the original link. ex. Facebook, Google
    • If you use this filter, the sessions will change as only the sessions that match the source will be captured
  • UTM Campaign
    • The utm_campign URL parameter of the session if one was defined in the original link. You can have UTM campaigns that run on multiple platforms
    • If you use this filter, the sessions will change as only the sessions that match the campaign will be captured
  • Grouping
    • Group the date range daily, weekly, or monthly