ProfitMetrics.io ads

Your agency can hit every ROAS target and still scale a client into losses. Google and Meta optimize for revenue. Your clients care about profit. A €100 order at 10% margin and a €100 order at 55% margin look the same to ad platforms. But to the e-shop, one hurts the bottom line while the other grows it. That's why I use ProfitMetrics with my clients. They calculate the gross profit for every order as it happens (accounting for COGS, shipping, discounts, payment fees) and send it back to Google and Meta as the conversion value. Now Google and Meta know which orders grow the bottom line too. And your agency can bid for profit, not just revenue. One account went from losing €15K/month to making + €7K in profit after ad spend. Same budget. Better signal. Become the agency clients don’t replace. Because you grow profit, not just ROAS. Book a demo to see how it works profitmetrics.io/book-demo Two questions: Is it accurate saying you use PM for your clients Is the example you use of one account a real one

🔥 Here's why I think advertisers bidding on profit have a competitive advantage. This is how ProfitMetrics.io actually does it: Somewhere in your business, the real cost of every product already exists. But most businesses don’t have costs connected to every order to see gross profit in real time. And even if you can see the gross profit, Google and Meta can still only see revenue (conversion value = revenue) So the algorithm bids for high revenue, regardless of margin. ProfitMetrics has a solution: → It connects to your shop and pulls COGS, shipping, payment fees, discounts, packaging → It uses those to calculate gross profit on every single order and show it to you in real-time → It then sends that gross profit back into Google Ads and Meta Ads as the conversion value. If you are eligible to do Profit Bidding (different order margins, enough conversion data a month and cost data setup) then it's a no-brainer. Suddenly you send in Gross Profit as conversion value and the algorithm will be only fed with that data. Machine learning naturally understands, that a conversion with higher Gross Profit is more valuable for the advertiser. The system starts optimizing towards Profit. The longer more data it acquires, the smarter it becomes. Beyond profit bidding, with ProfitMetrics you also get: → Server-side tracking to capture more conversions than before → The Real-time Dashboard to follow the POAS®, gross profit, contribution margin, and net profit of every order → A Profit labelizer tool to focus PMax, Shopping and Demand Gen campaigns to cut wasted ad spend. → An app, so you can see the actual profit you made today from your phone If you run Google or Meta for an e-commerce shop, this is the way to track and optimize for profit. Book a demo, and see how it works. https://lnkd.in/eSxdbjsn #ppc #ad

A POAS of 1.95 makes you more money than a POAS of 2.40. Same account. Same margin. Same products. POAS tells you how much profit you get back for every 1 you spend. Spend 1, get 2.40 back in profit. Spend 1, get 1.95 back in profit. Of course 2.40 looks better. But it only describes what you get back from the investment. It says nothing about how much you invested. Same account. Four bid targets. Flat 30% margin. High target: POAS 2.40 Ad spend 60,000 Contribution margin 84,000 Low target: POAS 1.95 Ad spend 120,000 Contribution margin 114,000 Efficiency dropped 19%. Contribution margin went up 30,000. Every step down looked worse in the platform. Every step down put more money in the bank. Here is the part that actually matters. You do not find the right target by calculating it. You find it by walking it down slowly and watching contribution margin after each step. As long as contribution margin keeps rising, you are still buying profitable customers. Keep going. At some point it flattens out. Then it starts falling. That is diminishing returns. The next customer just became more expensive than the profit they bring in. That is your ceiling, and it is the only honest way to find it. Most people never get there. They stop at a target that feels safe and call it optimized. And yes, someone will say it is fine to go below break even if you are acquiring new customers with a high lifetime value. Sometimes it is, but that is a separate decision, made on real backend repeat data, not on a feeling. This post is about the money you are already leaving behind above break even. POAS is how you set a target and steer the algorithm. Contribution margin is how you know if it worked.

📢 We just launched Conversion Booster for Meta. It taps into a major update from Meta that flew under the radar, but it changes everything about how we optimize for profit. Meta now lets you do value optimization based on non-purchase events. Just like we’ve had for years in Google Ads, we’ve now built a Conversion Booster for Meta with great support from Meta’s partner team. We’ve made it possible to identify new versus existing customers using full backend data, going back as far as needed from the ecommerce CMS. This opens up the Holy Grail: New Customer Profit Bidding. This is the big one. We identify new customers in real-time using your own first-party data. This means you can now bid only for new customer profit in your prospecting campaigns. The algorithm stops optimizing for "easy" returning customers and starts hunting for the new growth you actually want. Validating the impact Combine this with the new incremental attribution model and you have a game changing combo. You are optimizing for validated new customer profit from your own first-party data, not relying on cookies or third-party lists. We made it plug-and-play so you can set it up in minutes. 👇 See the full breakdown of the new Conversion Booster for Meta in the comments.

Your performance agency can save time AND get more profitable results, with POAS® (Profit on Ad Spend). Download the free POAS® Guide to learn more.

Win more pitches with POAS® (Profit on Ad Spend). Download the free POAS® Guide to learn more.