POAS: Profit on Adspend
Profit on Adspend is an ideal way to let advertising platforms optimize based on your profit margin instead of your revenue. This way, the focus changes and the likelihood of increasing your profitability goes up.
Note: Profit on Adspend only works in combination with Webhooks. In this article, I will explain how you can link these webhooks to your XML feed. AdPage Tagging ensures that the fields of your Item_id and product_price are included in the event data of the webhook purchase event.
Generate an XML feed. This can be done via tools like Channable, WooCommerce plugin, or another tool.
Go to the webshop where you want to set up POAS. Ensure you open the DataLayer of your webshop and search for the Item_id. The key is that this item_id has the same naming in your XML feed. This way, we can match the items, allowing us to merge the cost price we need into the webhook.
Next, open your XML feed and look for the cost price added in the XML feed. Note: The cost price per product (item_id) must be included in the XML feed. You can choose to customize the naming so that it is not clear to Google that you are sending your cost price.
Then, go to the AdPage Tagging dashboard (trytagging.com) and navigate to Optimization and then to Purchase Price.
In the first field, add the XML feed URL (1), in the second field, add the price label (2). In the example from step 3, you would add “g:custom_label_2”. In the last field (3), add the item_id that is the same in the DataLayer and in the Webhook.
Now the webhook is filled with the cost price. The next step is to create variables in the Server container that fetch the cost price.
Go to your Google Tag Manager Server container and open the preview mode. Follow the steps in this article: Preview GTM Server Side checken
Make sure to place an order to fire a purchase tag in the server container. Then search for “trytagging_purchase” and look for the variable “purchase_price”. Check if it is filled.
In the example, you can see that it is filled. Now, ensure that you create an event data variable with “purchase_price”. See the screenshot below:
Now, create a new variable for calculating the POAS (profit margin). Choose the variable type (Number & String Operations) (1), the operation type is “calculate” (2), the operation is “subtract” (3), and parameter 1 is the eCommerce value, which is the value of the order (4), and parameter 2 is the “purchase price” you created in the previous step (5). Save the variable.
You can now add the variable you created in the previous step to your Google Analytics purchase event, Google Ads Purchase (use the AdPage Tag for this), and the Meta Conversion API purchase tag.
Note: Profit on Adspend only works in combination with Webhooks. In this article, I will explain how you can link these webhooks to your XML feed. AdPage Tagging ensures that the fields of your Item_id and product_price are included in the event data of the webhook purchase event.
Generate an XML feed. This can be done via tools like Channable, WooCommerce plugin, or another tool.
Go to the webshop where you want to set up POAS. Ensure you open the DataLayer of your webshop and search for the Item_id. The key is that this item_id has the same naming in your XML feed. This way, we can match the items, allowing us to merge the cost price we need into the webhook.
Next, open your XML feed and look for the cost price added in the XML feed. Note: The cost price per product (item_id) must be included in the XML feed. You can choose to customize the naming so that it is not clear to Google that you are sending your cost price.
Then, go to the AdPage Tagging dashboard (trytagging.com) and navigate to Optimization and then to Purchase Price.
In the first field, add the XML feed URL (1), in the second field, add the price label (2). In the example from step 3, you would add “g:custom_label_2”. In the last field (3), add the item_id that is the same in the DataLayer and in the Webhook.
Now the webhook is filled with the cost price. The next step is to create variables in the Server container that fetch the cost price.
Go to your Google Tag Manager Server container and open the preview mode. Follow the steps in this article: Preview GTM Server Side checken
Make sure to place an order to fire a purchase tag in the server container. Then search for “trytagging_purchase” and look for the variable “purchase_price”. Check if it is filled.
In the example, you can see that it is filled. Now, ensure that you create an event data variable with “purchase_price”. See the screenshot below:
Now, create a new variable for calculating the POAS (profit margin). Choose the variable type (Number & String Operations) (1), the operation type is “calculate” (2), the operation is “subtract” (3), and parameter 1 is the eCommerce value, which is the value of the order (4), and parameter 2 is the “purchase price” you created in the previous step (5). Save the variable.
You can now add the variable you created in the previous step to your Google Analytics purchase event, Google Ads Purchase (use the AdPage Tag for this), and the Meta Conversion API purchase tag.
Updated on: 16/08/2024
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