Profit bidding is running your advertising to optimise to actual profit, not revenue.
Revenue does not help you scale. Your goal is to get control of one of your biggest cost pressures as an e-commerce business advertising online.
Stronger returns from your ad spend matter. They help you overcome stalled sales growth. They help you take that extra margin and invest it back into ads to compound growth, to grow teams, to buy more stock and to achieve economies of scale. Profit is the bedrock of any business, and we help you achieve that.
Revenue bidding vs profit bidding
| Revenue bidding | Profit bidding | |
|---|---|---|
| What the bid is based on | Revenue | The true margin on each product |
| How targets are set | One average ROAS across a group of products | A precise ROAS for every product |
| A 15% margin product and a 60% margin product | Get the same target | Each gets the target its margin can afford |
| What you see at month end | Sales, without knowing what they made | Sales, and the profit they made |