Google Ads is rolling out a new campaign setting named Gross profit optimization. The gross profit is calculated by Google by applying the gross profit margins you set up in the gross profit optimization goal to the value of each conversion.
Casey Gill spotted this change and posted about it on LinkedIn, she wrote that this is new, the gross profit optimization setting. "Now available in select Google Ads accounts and announced during Google Ads Academy. Early tests indicate a 15% uplift in campaign profit when using this setting," she added.
In order to set this up, you will need to have the following data passed to Google Ads:
- Cart data and COGS (cost of good sold) data in your product feed
- Set the optimization goal to profit tROAS (also known as POAS)
Here is a screenshot/graphic she shared of this:
Forum discussion at LinkedIn.
