At Wpromote we work towards profitability as our core metric of success. As profit-driven marketers, it is important that we shift our mindsets to look at Google Ads as a profit-center, not a cost-center. Optimizing to profits instead of other KPIs such as ROAS, CPA, or even revenue, is the best way to align all parties to drive bottom line growth for your business.
Try our Profit Calculator to see the profits your Google Ads budget can generate.
Inputs should be based on the last 30 days of Google Ads data.
How many times are your Google Ads served in a 30 day period?
Number of times times your Google Ads are clicked in a 30 day period.
The total dollar amount you spend monthly on Google Ads.
The average number of site visitors, from Google Ads, who have purchased something from you online over 30 days.
The income that your business receives from your Google Ads campaign over 30 days.
Impression share shows you how the performance of your ads compares with the performance of others’ ads.
This metric is calculated by taking the number of impressions your ad received divided by the total number of impressions your ad was eligible to receive over 30 days.
Learn how to find your Search Impression Share here.
Margin is the difference between a product or service's selling price and its cost of production or to the ratio between a company's revenues and expenses.
Google found that retailers saw a 170% growth in profits from Google Ads by adopting a profit-driven strategy.
Want to learn more about what makes a profit-driven approach different? This guide will make you think twice about current digital marketing strategies. Learn how to leverage LTV and volume to make your Google Ads, Facebook, and other paid investments go further.
Typically, retailers focus on optimizing sale margins to maximize profits. Yet, working solely with margins only optimizes half the profit equation, ignoring inventory turnover (volume). In other words, retailers’ digital advertising strategy is often at odds with fundamental industry truths.
Why does this matter? As a retailer it is likely that your success depends heavily on selling high volumes of inventory to maximize profits. When you optimize towards profits, you are aligning all parties to generate bottom line growth for your brand.
Moving to a profit-based marketing approach can empower your digital teams to pursue new tactics that have the potential to drive big returns and additional customers. By shifting mindsets and measurements you’ll be able to extract as much profit as possible from your marketing spend.