Yes, it is worth it if you’re selling a range of products with different margins. The primary benefit of Profit Metrics is that it can account for cost prices, shipping & payment fees and report profits in your Google Ads account. It doesn’t only report profit, the main benefit is that you can use profit as your primary conversion action, and Google’s smart bidding strategies will prioritise higher margin products.
Revenue is vanity, profit is sanity!
If you’re selling one or a limited amount of products with a flat margin across the board then it doesn’t make much sense, you can simply set up a server container in GTM to take advantage of the ~20% increase in recorded conversions you get compared to the default setup.
Profit Metrics Pros
Quick summary of what I like about Profit Metrics and why you should consider it too.
1. Quick account summary on key metrics, great for any ecommerce PPC agency.
2. Great support team to help you every step of the way with the integration. They can be slow at times, but you can book a call with them, and they can even do the integration for you if you’re struggling or need 1-1 assistance.
3. Shopping Booster feature allows for labelling products based on performance. You can define your own rules on what you consider profitable & unprofitable, and then manage the ad spend better in the account.
Apply it as a custom label and create a campaign for the Unprofitable bucket where you set a higher ROAS target and a limited budget, as well as have a separate campaign for profitable products with a more aggressive tROAS.
It’s very similar to Producthero Labelizer solution and Flowboost Labelizer script.
4. Take advantage of server-side tracking & Converison Booster, which helps capture more conversion data compared to the default implementation in the below example, we’re recording 14% more transactions and 11% more revenue with Profit Metrics conversion actions.
5. You can connect it to Facebook and even push profit data to Facebook, it’ll have to be set up under a different event name due to Facebook limitations, something like Registrations completed just so you can keep the purchases to revenue to compare both.
6.
Profit Metrics Cons
Constructive feedback, it’s still great value for what it is :)
1. Price – they charge per order. $32 per domain + $0.1417 per order for the first 5,000 and + $0.0185 for anything extra. So it can get expensive if you’re getting lots of orders. For example:
- 500 orders – $103/month
- 1,000 orders – $174/month
- 2,000 orders – $315/month
- 5,000 orders – $740/month
- 20,000 orders – 1,018/month
I’d love to have an option for a discounted fixed fee especially for stores that get many orders to make it more accessible and predictable.
2. Email support sometimes takes a bit longer than I’d like to reply.
3. Outages, although it rarely happens, there may be instances where you’re going to have to apply data exclusions.
4. It doesn’t account for refunds/cancelled orders yet. Support confirmed they had plans to do it, but no ETA was provided.
5. No integration with Bing Ads, you can just pull cost data into the dashboard, but can’t send profit.
Profit Metrics Case Studies
Auto Parts Retailer
With over 54,000 products across 439 brands and 201 categories we desperately needed a tool like Profit Metrics to feed the right data to PMax campaigns and help them optimise for profit, not just revenue.
Profit Metrics conversion actions have recorded 45% more transactions compared to the old tracking tag.
And we’ve been able to double total profit after ad spend from an average of £150K/month to £320K/month.
Read the full case study here.
Golf Shop
Although this is a DTC Shopify brand they also sell resell products at a much lower margin so Profit Metrics came to the rescue and helped us prioritise the right products in the campaigns.
Read the full case study here.
Tools & Equipment Ecommerce
With over 2,000 products in the feed and tiny margins, we needed to optimise for profit above all else. And in just 3 months, we have been able to double the profit after ad spend with improved tracking.
Read the full case study here.
To sum up
If you’d like to give it a try or support the work I do check out Profit Metrics following this link: https://profitmetrics.io/?fpr=victor and sign up for a free trial (it is an affiliate link meaning I will get a small commission if you sign up for a paid plan at no extra cost to you).
PS If you click on my affiliate links, I may earn a tiny commission at no extra cost to you, which helps support the work I do and earns treats for Paco (my cat) and most of the time, you’ll get an offer too. Win-win! I only promote products I personally use.