Profit vs. ROAS

Using ROAS to Measure Success?

You’re probably leaving money on the table. ROAS (like A/S, and CPO/CPA) doesn’t account for cost of goods or costs like shipping and payment processing. It simply won’t help you find the best way to manage ad spend. The result: over-efficiency and less profit.

At Omnitail, our analysts evaluate every account, calibrate bidding strategy to create incremental profit, and maximize it. The result: optimal efficiency and increased profit!

MAXIMIZE OPERATING PROFIT WITH MARGIN-BASED BIDDING

Profit-Driven Bid Management

Advertisers who do not measure profit directly cannot possibly optimize for or maximize it. We customize our bidding
strategies for each client with the objective of maximizing profit. Our flexible bidding strategies account for:

  • Costs of Goods Sold (COGS)
  • Variable Overhead Costs (VOH)
  • Merchandise Return Rate (MRR)
  • Inventory Cycle Planning (reducing margin tolerance on excess inventory)
  • Customer Lifetime Value (CLTV)
  • Offline Sales (Call tracking)
  • Other business assumptions such as leads or chats where pertinent.
vs

Other Agencies

  • OVERSPEND
    Because their rates are based on ad spend, other agencies may push you to spend more
  • CAP SPEND
    Halt spending according to a certain ROAS target, even if you want to spend more on advertising
  • USE ROAS
    Traditional metrics such as ROAS or CPO/CPA which don't account for cost of goods, order size (in the case of CPO), and other relevant metrics such as overhead costs.

Omnitail

  • NEVER MAKE YOU OVERSPEND
    Our rates are not based on your ad costs, so we're free to spend at the level that makes sense for your business!
  • NEVER MAKE YOU CAP SPEND
    We believe that sometimes, spending a little more pays off. We calculate available profit and manage your spend to capture every dollar!
  • USE PROFIT
    Manage account to maximize incremental profit, incorporating a combination of relevant metrics to give you the full picture of your account.

Learn how profit-driven bidding can grow your business.

Profit Success Stories

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