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Setting Up Campaigns Based On Your Profit Margin

Setting Up Campaigns Based On Your Profit Margin [Advice From a Google Ads Agency]

You can afford to pay more in advertising if you have bigger profit margins.

— Petra Manos
High ROI Ecommerce Google Ads Specialist

When it comes to making profits from retail sales online, purchasing and/or manufacturing practices may be as important as your advertising techniques. If you can negotiate a wider margin then you can afford to advertise more and should therefore make more revenue.


If your product range has quite varied margins, you would want to split your campaigns based on profit margins rather than have everything in one campaign. That way you can advertise more of the inventory that makes you the most money!

— Petra Manos
High ROI Ecommerce Google Ads Specialist

You might not realise it, but if you advertise a product with better profit margins you can make a huge impact on your profit from advertising. The reason being, if you advertise a product with small margins, the advertising cost will take up all of the profit margin, leaving you with break even or a small loss from selling the product. If you sell a product with wide margins, you will make a profit as long as your advertising cost is smaller than the margin. For an in-depth look into how to set up your advertising to take advantage of different profit margins, download our white paper at https://www.thequantifiedweb.com/google-shopping-ads-cheat-sheet

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