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.
Revenue target return on ad spend vs profit-fed target return on ad spend
- Profit @ revenue target return on ad spend
- Profit @ profit-fed target return on ad spend
Same strategy, different inputs: feeding profit values compounds margin instead of chasing flat revenue.
Track Profit on Ad Spend automatically from your store — upload profit conversions and scale winners with A/C/X labels.
How target return on ad spend bidding works
You set a target (e.g., 400%). Google predicts each auction's conversion value and bids to achieve that average return across conversions.
The catch: it optimizes toward whatever value you upload. Send list-price revenue and it maximizes revenue — including on unprofitable orders.
Making target return on ad spend profit-aware
Upload profit-weighted conversion values and the same target return on ad spend strategy now optimizes toward margin. High-profit SKUs get more aggressive bids; loss makers get suppressed.
Profit Bid automates this profit conversion upload from your store, turning standard target return on ad spend into de facto profit bidding.
Frequently asked questions
Common questions about this topic — tap to read answers.
What target return on ad spend should I set?
Above your break-even Return on Ad Spend with a margin of safety for fixed costs. Derive it from real margin, not a competitor's number.
Why is my target return on ad spend profitable in Ads but not in my P&L?
Because Ads measures revenue Return on Ad Spend. If conversion values ignore COGS and fees, a 'winning' target return on ad spend can still lose money. Send profit values.
