Google Ads: How to optimize campaigns for profit?

Reaktion calculates the profit of each based on product costs, shipping fees, payment fees, return fees, and pick & pack (click here for costs settings and click here to see the calculation for each order). It's very fast and easy to start optimizing your campaigns for profit on Google Ads.

Higher order value doesn't necessarily mean higher profits. Profit optimization takes into account the variable costs such as unique product costs, payment fees, shipping, etc. 

Step #1

Note: Please check you have no remaining tasks here prior to this and you have integrated Reaktion x Google Ads atleast for a few weeks: https://advertiser.reaktion.com/tracking/google-tracking

Go to your conversion events in Google Ads:
https://ads.google.com/aw/conversions/

In this overview, you'll find important conversion actions/events when you want to optimize for:
ReaktionProfit and ReaktionProfit (Conversion Booster). 

Now, click on ReaktionProfit:

Step #2

Here you'll find the conversion action details. Set this as a "Primary action used for bidding optimization".

Remember to click "Save" and then "Done" in the lower part of the screen. 

Step #3

Repeat the procedure listed above, but now with the conversion action named "ReaktionProfit (Conversion Booster)". In the select box "Import offline conversion", select "API". 



Again, please remember to click "Save" and then "Done" in the lower part of the screen. 



Now your conversion action overview should look like this:

That's it! By setting these conversion actions as primary event you are asking Google Ads algorithm to optimize for profit!