What We’ll Look At
This video explores why agencies and teams promote profit-based bidding as the ultimate approach in e-commerce, yet reveals overlooked challenges that can hinder real-world results. It emphasizes how margins, data stability, and promotions all shape whether profit-focused strategies truly deliver the best outcomes.
In the video, you’ll see specific scenarios where profit-based bidding doesn’t align with actual business goals, especially if all products share the same margins. There’s discussion about crucial methods that allow advertisers to test lower ROAS targets without jeopardizing overall profitability.
Additionally, the video covers how major sales and discounts can distort the signals that Google Ads’ smart bidding relies on. You’ll see firsthand why these fluctuations lead to a yo-yo effect with high CPC one week and lower CPC the next.
Finally, the video uncovers ways to use max CPC limits and secondary conversion actions to align profit-based tracking with your core Google Ads strategies. You’ll get a clear roadmap to maintain efficiency without sacrificing valuable insights.
Chapters
0:00 – Why Profit-Based Bidding Is Not for Everyone
Learn how agencies often proclaim profit-based bidding as essential, but see where it falls short in certain scenarios.
1:30 – Three Main Benefits of Profit-Focused Tracking
The video highlights different margin products, aligned KPIs, and better profit insights as key advantages.
3:15 – Critical Myths to Bust
Discover two common misunderstandings about uniform margins and the role of profit in business metrics.
5:10 – Biggest Drawback: Smart Bidding Inefficiency
See how unpredictable data stability leads to poor bid predictions and why it can hurt your account.
7:20 – The Impact of Promotions on Margins
Promotions can drastically shift both AOV and margins, causing inconsistent bidding results.
9:10 – Handling Low POAS Targets
Understand how a small drop in ROAS can become a much bigger drop in actual profit.
11:35 – Strategies for Stabilizing CPC
Find out why setting max CPC limits keeps your smart bidding from spinning out of control.
12:55 – Secondary Actions vs. Full Profit Tracking
Explore how to gather profit insights without switching your entire account to profit-targeted bidding.
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