Paying for Shop Campaigns
Each time an order is placed as a result of a Shop Campaign, it's attributed to Shop Campaigns, and you're billed accordingly. Use this page to learn more about Shop Campaign budgets and billing.
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Understanding Shop Campaign budgets
When you create a Shop Campaign, you need to set a budget that includes customer acquisition cost, daily budget and target return on ad spend.
Customer acquisition cost
The Customer acquisition cost is the amount that you're willing to spend to acquire a new customer in one transaction. This is the cost you're charged for each new customer who either places an order redeeming your offer, or places an order from your store after viewing a Shop Campaign ad. The minimum and recommended customer acquisition cost values are based on your store's average order value.
The maximum increase in value to a new customer's Shop Cash balance for a Shop Cash offer is based on your customer acquisition cost. A higher customer acquisition cost results in a more generous offer for your customers.
Your customer acquisition cost for a customer is the same amount whether a customer redeems a Shop Cash offer, or makes a purchase in Shop after clicking an ad. For some orders, you're charged only a portion of the customer acquisition cost, and on other orders, you're charged the full customer acquisition cost. You're never charged more than your maximum set customer acquisition cost.
Daily budget
Your Daily budget is the total amount of money that you want to spend each day that your Shop Campaign runs.
If you don't reach your daily budget on a single day, then the remaining budget for the day is rolled over into subsequent days to optimize your Shop Campaign offer spend.
Shop Campaigns are rolled over from Sunday to Saturday each week, and the rollover amount is reset to 0 USD each Sunday. Some days you might spend less than your daily budget, and on others you might spend more, but you won’t exceed your total budget for the calendar week. For example, if your daily budget is $100 USD, then your offer spend won't exceed 700 USD in total for the calendar week.
Target return on ad spend
The Target return on ad spend is the specific ad spend return that you set for your advertising campaigns. When you set your target return on ad spend, it represents the desired ratio of revenue that you make, compared to what you spend on advertising your Shop Campaign.
For example, if your target return on ad spend ratio is 2.0, then Shop Campaigns ensures that for every $1 USD that you spend on ads, your campaign generates at least $2 USD in revenue. This means that if you set your ad spend budget to $1000 USD per week, then your campaign generates at least $2000 USD per week in revenue.
Shop Campaigns order attribution
When an order is attributed to Shop Campaigns, a Shop Cash Offer Acquired tag is applied to both the customer and order.
An order is attributed to Shop Campaigns in the following cases:
- A first-time customer redeems a Shop Cash offer towards a purchase from your store on Shop or Shop on the web.
- A first-time customer makes a purchase from your store on Shop or Shop on the web after viewing a Shop Campaign ad for your Shop Cash offer, store, or products.
Shop Campaign billing
Each time an order is attributed to a Shop Campaign, charges are deducted from your Shopify Payments payout balance. These charges display on your payout as Shop Cash campaign billing debit. This continues until your total campaign budget is reached. If your daily budget is reached and no rollover budget is available, then the offer is paused and is no longer displayed in the Shop app for the rest of that day. Your budget resets and your offer resumes the following day.
There's no prefunding required to create a Shop Campaign. If your Shopify Payments payout balance has insufficient funds to cover campaign charges, then the deduction is reattempted until the charges are successful. During this time, the Shop Cash portion of your order payout is withheld until the campaign fees are collected.