Digital Advertising
Profit-led Performance Max for e-commerce: optimise margin, not revenue
A high ROAS does not always mean high profit. How to run Performance Max more efficiently by grouping products by margin.
Performance Max combines all of Google’s inventory in one campaign. But putting every product into a single campaign with only a ROAS target can push the algorithm toward items that sell easily yet earn the least.
Group products by margin
Split your catalogue into high, medium and low-margin groups and manage each as a separate campaign or asset group, giving high-margin products more aggressive targets.
Your product feed is your ad
Success depends heavily on product data quality: intent-led titles, correct categories, clear images and complete attributes lower cost per click.
Value new customers separately
Repeat sales and new-customer acquisition are not equally valuable; measuring acquisition separately reveals the real source of growth.
Refresh creative assets
Short product videos and lifestyle images improve performance on YouTube and Discover; reusing the same visuals for months causes creative fatigue.
Report profit
Beyond revenue and ROAS, include product cost, shipping and return rates. Real success is the profit left after advertising.
