When you choose Cost per Day as your goal, Adspert manages how your fixed daily budget is distributed across different campaigns and criteria, like e.g. keywords or ASINs.
This budget allocation can be based on either revenue or profit optimization.
Your choice between the two optimization types significantly affects where your money goes and how your ads perform.
Let’s have a closer look.
Revenue Optimization: Focus on Revenue
With revenue optimization, Adspert aims to maximize revenue while staying within your daily ad spend.
For each criterion (ASIN or keyword), Adspert calculates the net result (Revenue – Ad Spend) to guide budget allocation toward revenue-generating criteria.
Adspert gives more budget to criteria that bring in more revenue, even if those products have low profit margins.
In short: if something sells well, it gets more budget – regardless of how much actual profit it generates.
Profit Optimization: Focus on Net Profit
Important note: Profit optimization type is only available to Enterprise, Scale and Pro plan users. Learn more about Adspert optimization types here.
When you switch to profit optimization, the focus changes to maximizing net profit instead of revenue. Net profit is calculated as:
Net Profit = Gross Profit – Ad Spend
Here, gross profit means your actual product profit margins: revenue - Cost of Goods Sold (COGS) and fees.
Adspert prioritizes spending on criteria (keywords, ASINs…) that sell high-margin products, even if they bring in less total revenue.
In short: if something earns more profit per sale, it gets more budget – even if it doesn’t sell as much.
What Does Profit Optimization Mean for Your Performance Group Spend?
Your total daily budget stays the same. But its distribution within the Performance Group changes:
More budget goes to products or keywords that yield higher profit per sale.
Less budget goes to products of keywords that yield high revenue but low actual profit.
Switching from Revenue to Profit Optimization Can Help You:
Increase your overall net profit
Better align your ad strategy with your business goals, especially if your product margins vary widely.
Conclusion
To sum it up, here’s how revenue and profit optimization differ when using a Cost per Day goal:
Revenue optimization prioritizes criteria that generate the most revenue, even if profit margins are low.
Profit optimization prioritizes criteria with higher profit per sale, directing more budget to high-margin items.
There is no right or wrong – choose the optimization type that is best aligned with what matters most to your business.
If you’re not sure, we’re always here for you. Reach out to us via chat or email!
Note: Profit optimization is only available for clients with either an Enterprise, Scale or Pro Subscription