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