Google Ads

Profit Optimization on Google Ads

There are fantastic news for webshops wishing to increase their profit through Google Ads. Google has just held their annual marketing event where they presented exciting news about optimization focusing on profit in Google Ads.

New Feature: Includes Cost of Goods Sold in Your Product Feed

If you're familiar with digital marketing and want to increase the revenue for your webshop, you've probably heard of ROAS (Return on Ad Spend) and set a goal for it. Many webshops have calculated, or maybe just guessed, what ROAS goal is best for their business. But besides being able to monitor how much revenue you get back compared to your spending on Google Ads, it's even more important to be able to monitor the profit Google Ads generates for your business. Google has now made this even easier for advertisers to follow on their platform.

By optimizing your product feed to include cost_of_goods_sold (COGS), you can get a better overview of how much profit your Google Ads campaigns generate. At the same time, you have the opportunity to optimize your campaigns to maximize profit. This new feature on Google Ads gives webshops a unique opportunity to improve their bottom line. As the goal becomes clearer, you can make the right decisions to increase your profit.

What is Cost of Goods Sold?

Let's say you sell a product on your webshop for $100. Now imagine you've paid a price of $50 for this product. The cost of goods sold, also known as COGS, is the $50 you've paid for the product. By including the price you've paid for each of your products in your product feed, you'll create the opportunity to optimize your Google Ads campaigns based on the goal of achieving higher profit. Of course, you also have other expenses in your webshop, but optimizing with the cost of goods sold in mind will help you achieve better performance on the products that provide the highest return for you as a webshop.

How It Can Benefit Your Webshop

By properly utilizing this new opportunity on Google Ads, your webshop will experience better results on the bottom line. The goal becomes clearer, and you can make decisions based on profit optimization rather than just revenue optimization. This provides a more strategic approach to your advertising expenses and ensures that your investments in Google Ads provide the best possible return.

Take Advantage

With Google's new feature, which allows inclusion of cost_of_goods_sold in the product feed, webshops can now focus on maximizing their profit through Google Ads. This creates a better understanding of campaign performance and enables more informed decisions. It's a game changer for webshops looking to optimize their advertising strategy and improve their bottom line.

So if you haven't yet taken advantage of this new opportunity, it's time to update your product feeds and start optimizing your campaigns with profit as the main focus. It will undoubtedly give you a competitive advantage and help you get more out of your advertising expenses.