Margin control in Google Ads means that you not only keep an eye on sales, but also factor the margin of your products into the optimization. So instead of simply advertising products with high sales, you concentrate on those products with the largest margin .
Let's look at an example:
Controlling by sales vs. control by margin
If all other factors such as conversion rate and cost per click (CPC) are equal, revenue-based optimization would give priority to promoting the more expensive product A because it generates more revenue. But as you can see from the margin, product B is significantly more profitable for your company. It would therefore make more sense to target your ads bulgaria phone number data to product B to increase profitability. Margin-based optimization allows you to give Google the right signals and specifically increase bids for products that have higher margins.
For whom does margin control make sense?
Margin-based control is particularly useful for you if you run an online shop with a broad product portfolio where margins fluctuate greatly . If you want to maximize not only sales but also actual profit in the long term , margin-based control is a crucial step. After all, it is of little use to you to advertise a lot for products with low margins while the high-margin products are neglected.
With conversion tracking in Google Ads, you can see which of your ads lead to a sale and how much revenue you generate with them. In order to be able to manage your Google Ads account based on margins, it is necessary to record not only the sales but also the margins in conversion tracking . To do this, your online shop must be technically capable of transmitting the margin data in conversion tracking to Google Ads. The safest and preferred method is to transmit it via server-side tagging in order to keep sensitive margin data internal and protect it from third-party access.
It is important that there is enough data available in the Google Ads account for later margin-oriented optimization. If you have had difficulty reaching your ROAS-based goals and are only achieving a few conversions at campaign level, then there is probably not enough data available for margin-based control. Margin-oriented control therefore requires a certain account size with sufficient conversion data.