Hello and thanks for your interest in profit bidding. I’m Ben, founder of GROW. In 2010 I was faced with an ultimatum: grow sales and improve quality, or we cut back activity. Back then I was co-founder of the price comparison site RedBrain. The fear of losing a big chunk of the business I had spent 2 years building was very real, but out of it came a methodology that has since generated over £1.2 billion in incremental revenue for retailers. The person that gave me that ultimatum is now my commercial & partnerships director.
The methodology I developed is centred around profit bidding. Frankly, it blows my mind that almost the entire e-commerce industry optimises to revenue and ROAS. To make matters worse, people pick a rough average ROAS and apply it to multiple products in a group.
ROAS and revenue are not profit. Profit is what a business needs to scale, and in order to scale, you need control. Grouping products with an average ROAS bid does not give you control. These are the two core principles my methodology fixes, plus a third: automation. The ability to automate all of these complex calculations and build a granular campaign structure, so you don’t have to think about it. You just run it and it works.
Over the next few pages, I will explain what profit bidding is, how it works, how to put it into practice, the things you should think about and how, ultimately, it will help you get control of your profit margins and sales growth.
My goal is to help you put a methodology in place that will deliver you and your business better results. Everything in this guide you can implement yourself. I built my company GROW as a profit bidding and automation technology platform for e-commerce brands. I would love to have you as a user of our platform. Everything I know from the last 20+ years in e-commerce is in this technology, and I hope to prove to you in this guide that this technology can deliver the results you need, to win your trust and to develop a long-term partnership.
Ben PhelanFounder, GROW