See Profit on Ad Spend vs revenue-only reporting
Profit Bid connects store costs to ad spend so you bid on margin — not vanity Return on Ad Spend.
Track Profit on Ad Spend automatically from your store — upload profit conversions and scale winners with A/C/X labels.
The discount math
On a $100 order at 40% margin, gross profit is $40. Apply a 20% discount and revenue drops to $80 while COGS stays — profit falls to $20, a 50% cut.
Return on Ad Spend drops only ~20%; Profit on Ad Spend drops ~50%. That asymmetry is why discount-driven campaigns look fine on Return on Ad Spend but bleed profit.
Protecting profit during promos
Model discount depth against each SKU's margin before running a promo. Exclude thin-margin items or cap their discount.
Feed post-discount profit values so bidding does not scale codes that turn margin negative.
Frequently asked questions
Common questions about this topic — tap to read answers.
Should I ever run discounts?
Yes — strategically, on items with margin to spare or strong LTV. The mistake is discounting blindly and bidding on the resulting revenue.
How do I include discounts in Profit on Ad Spend?
Use the actual (post-discount) order revenue when computing profit. Profit Bid handles this automatically from order data.
