Optimize Retail Media ROI with Incrementality and Profitability Insights
Revenue is exciting. Profitable, incremental revenue is what scales a business. At Stella Rising, we connect unit economics to marketing impact so growth doesn't outpace profitability. Our profitability and incrementality analysis digs deep into SKU-level contribution, media efficiency, and true lift to help you make smarter decisions about where to scale for your brand, where to hold, and where to exit.
WHAT WE DO TO ANALYZE RETAIL MEDIA PROFITABILITY
Unit Economics Meets Marketing Science to Drive Incremental ROI
We analyze the full picture of profitability and growth quality:
- SKU-Level Contribution Analysis: Comprehensive cost modeling including fees, freight, FBA, and co-op deductions
- Price Elasticity & Promo Cannibalization Modeling: Understanding where volume adds profit and where it simply shifts demand
- New-to-Brand & True Lift Measurement: Leveraging Amazon Marketing Cloud (AMC) to quantify incremental revenue versus reallocation
- Portfolio Mix & Scale Thresholds: Identifying which SKUs deserve investment and which are dragging down overall performance
- Floor ROAS/TACoS Guardrails: Setting realistic efficiency targets by SKU and lifecycle stage
- Executive Playbook: Clear "scale/hold/exit" decision frameworks tied to profitability
HOW WE MEASURE RETAIL MEDIA INCREMENTALITY
Build the Truth Set and Model Scenarios That Reveal True Growth
We start by gathering the full cost and revenue picture: COGS, platform fees, freight and fulfillment costs, deductions, media spend, and promotional history. This creates a truth set that reconciles finance and marketing perspectives.
With accurate margins in hand, we model price elasticity and promotional effects to see where volume truly adds profit versus simply shifting timing or cannibalizing full-price sales.
AMC-based analyses quantify new-to-brand customers and assisted revenue, allowing us to separate genuine lift from demand reallocation. This distinction is critical for sustainable growth.
From there, we set guardrails: floor ROAS and TACoS targets by SKU and lifecycle stage. We chart the path to efficient scale with clear thresholds for budget expansion, maintenance, or pullback.
RETAIL MEDIA PROFITABILITY ANALYSIS DELIVERABLES
Dashboards, Heatmaps, and Decision Playbooks for Smarter Investment
You'll receive a profitability dashboard and heatmap that color-codes your portfolio by contribution and growth potential. This visual framework makes it immediately clear which products are performing and which need attention.
We provide a decision playbook that spells out which SKUs to scale, hold, or exit, along with the strategic rationale behind each recommendation.
Scenario models show the P&L impact of changes to pricing, promotions, and media investment. Operating rules translate high-level strategy into daily bid and budget decisions your team can execute with confidence.
RETAIL MEDIA MEASUREMENT & OUTCOMES
Measuring Contribution Profit and Efficiency to Scale Sustainably
We track contribution profit and efficient scale as primary outcomes, with new-to-brand lift and media-mix contribution as quality checks.
Every readout ties back to the P&L so your team understands the tradeoffs between growth and margin. This clarity enables smarter choices that compound over time rather than chasing vanity metrics that don't move the business forward.
Ready to Scale Profitably?
Not all revenue is created equal. Let's build a growth strategy anchored in profitability and incrementality.