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Grow · Budgets and bidding

Budgets and bids set by margin, not by ROAS

A ROAS target only means something once you know what is left from each sale. I work out your store's profitability thresholds and turn them into bid strategies and budgets the platforms can actually follow.

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In short

This service decides how much to spend, and against which target, in Google Ads and Meta Ads, based on the real margin on your products. I calculate break-even ROAS and category targets from contribution profit, choose suitable bid strategies and move budget towards the campaigns with the best marginal return. It is for WooCommerce stores that want to scale spend without losing control of profit.

Common budget and bidding mistakes

  • One ROAS target for the whole catalogue

    Products with very different margins share the same target. High-margin lines are held back for no reason while low-margin lines sell at a loss.

  • Conversion value equals revenue

    Platforms optimise for whatever value they receive. If that is gross revenue including VAT and shipping, the algorithm chases turnover rather than profit.

  • Budgets set by habit

    Campaigns get the same budget they always had, with no view of what the next euro will return. Some are capped by budget while others are already past break-even.

How I set budgets and bids

I start with a simple margin model built from your product costs, shipping, payment fees and returns. From there I set targets per product group and choose the bid strategy that best suits each campaign's conversion volume.

  • Break-even ROAS and target ROAS calculated per category or margin tier.
  • Conversion values adjusted to reflect margin or profit, where the data and privacy considerations allow.
  • A choice between Maximise conversion value, target ROAS or target CPA depending on volume and campaign stage.
  • Budget reallocated according to marginal return and profitability limits.

What you get

  • Margin model

    A spreadsheet with product cost, shipping, fees and returns by category, and the contribution profit that results.

  • Target table

    Break-even ROAS, target ROAS and maximum CPA per product group, ready to apply in Google Ads and Meta Ads.

  • Bid strategy plan

    A recommended bid strategy for each campaign, with the criteria for switching to another.

  • Budget rules

    Criteria for increasing, holding or reducing budget, including promotional periods and seasonality.

  • Margin-based conversion values

    A technical proposal for sending margin-based values to the platforms, with the privacy implications assessed.

How it works

  1. Gather cost data

    I ask for product, shipping, fee and returns costs, or help you extract them from WooCommerce and your ERP.

  2. Model and targets

    I build the margin model, calculate targets per product group and review them with you.

  3. Apply in the platforms

    I adjust targets, bid strategies and budgets gradually so the algorithms' learning isn't thrown off.

  4. Ongoing monitoring

    I track the contribution profit the campaigns generate and update targets when costs change.

Tools I use

  • Google Ads
  • Meta Ads Manager
  • Google Sheets
  • Looker Studio
  • GA4
What is break-even ROAS?

It is the minimum ROAS at which a sale stops losing money once the product, shipping, fees and the ad itself are paid for. It comes from your contribution margin and is the basis for realistic targets by category.

Can I send profit instead of revenue to Google Ads?

You can send margin-adjusted conversion values, for example calculated server-side. It is worth weighing how reliable your cost data is and the fact that the platform will see that value, and keeping actual revenue in GA4 for analysis.

How often should targets change?

Frequent, abrupt changes disrupt automated bidding while it learns. I prefer gradual adjustments, reviewed regularly and whenever costs, prices or the product mix change.

Related tools

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Want to know the lowest ROAS your store can profit from?

Book a discovery call. I will explain how to work out your break-even point and what data I need to set targets by category.

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