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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMeasurement & AttributionUnit Economics

Measurement & Attribution

Unit Economics

The revenues and costs associated with a single unit, such as one customer or order, used to judge whether growth is profitable.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Unit economics are the revenues and costs associated with a single unit of business, such as one customer or one order. Common measures include contribution margin per order and the ratio of customer lifetime value to acquisition cost. They show whether each sale is profitable, which determines whether growth creates or destroys value.