Profit Maximization

A typical use case for Profit Maximization would be a lead-generation business with little branded traffic. In this case, the customer wishes to maximize revenue while minimizing ad spend. This goal would be used when you don't have a specific target ROAS or Spend. This is a powerful optimization goal. It will keep spending as long as revenue > cost. Also, be aware that profit maximization may drive spending in campaigns with negative profit to zero.

The above chart illustrates profit-maximizing targets (gold stars) for a set of four campaigns. Campaign A (green) requires a moderate decrease in target to maximize profit. Campaign B (blue) requires a moderate increase in target to maximize profit. Campaign C (red) requires a maximal boost to maximize profit. Campaign D (magenta) will have a negative profit regardless of the target, so in this example, the profit-maximizing solution would be at the far left (minimum target).

Marin Optimization can support Profit Maximization goals, but it's not one of the listed Strategy goal types supported natively in the application today. This solution supports the following campaign Publisher Bid Strategies only: MaximizeConversions, MaximizeConversionValue, TargetROAS, TargetCPA. 

Benefits 

  • Increase profit compared to Maximizing Revenue to a Spend or ROAS target
  • Fully automated workflow
  • Leverages Marin's advanced AI-powered forecasts (see article)

Setup

Speak to your Marin representative to learn more and for help setting this up.

 

 

 

Written by Joe Southin

Last published at: June 3rd, 2024