Measure your daily profit on ad spend

Measure your daily profit on ad spend

Hop Designer

Mayank Verma

Category

Revenue, Marketing

This is a daily report showing how much gross profit you generate per dollar spent on advertising. It gives you an accurate view on how profitable your ads are after cost of goods have been accounted for.

Calculations used:

COGS = Cost per item (Shopify) x qty of products sold in that day

Integration(s)

How to use this Hop.

Simply create an Airboxr account and connect your Shopify store to automatically run this export/analysis for your store. If you already have an account, click on the Add to my Collection button above.

  1. Profit-Centric ROAS Approach: The report shifts the focus from traditional ROAS, which considers revenue, to a more profit-centric approach. It highlights the profit generated for every dollar spent on advertising. This metric measures the effectiveness of advertising campaigns in driving profitable sales.

  2. Pricing Strategy Refinement: The inclusion of COGS allows businesses to assess the impact of pricing on the overall profitability of each product. This insight informs pricing strategy refinement, helping e-commerce stores set prices that not only cover costs but also contribute significantly to profit margins.

  3. Strategic Advertising Adjustments: The report empowers businesses to make strategic adjustments to their advertising campaigns. By identifying which channels or campaigns contribute most effectively to profitability, e-commerce stores can refine targeting, messaging, or creative elements to enhance the performance of high-impact advertising initiatives.

  4. Performance Trend Identification: Over time, the report helps identify trends in the relationship between ad spend, sales, and profitability. Businesses can uncover patterns in the effectiveness of advertising efforts during specific periods or under particular market conditions.

In This Report

Metrics

  • Facebook Ads Spend

  • Google Ads Spend

  • TikTok Ads Spend

  • Total Ad Spend

  • Total Sales [Shopify]

  • Cost of Goods Sold (COGS)

  • Gross Profit

  • Gross Margin (CM1)

  • Profit On Ad Spend

Grouped By

  • Date

Try this report for your own store.

Connect your Shopify store and automate this report. You will never have to manually work with data again.