The Challenge

Disruption Agency wanted to move beyond the industry average when it came to their clients’ tracking and Google Ads setup. They wanted full insight into all their conversions, and the ability to focus their optimizations around profitability.

Tracking

Disruption Agency wanted to improve their clients’ conversion tracking.

Most e-commerce companies are only able to track around 80% of their conversions due to data loss from payment gateway redirects, or issues with the tracking script not firing correctly. Without accurate data, the algorithm can’t perform as effectively.

Profitability

Like many e-commerce agencies, Disruption Agency had difficulty showing clients the actual, bottom-line profitability produced in the campaigns they were running.

Clients were hesitant to scale their ad spend without understanding the actual returns, and the lack of visibility into profit made it difficult for Disruption Agency to clearly demonstrate the value they were bringing.

Without profitability numbers, they were also unable to optimize their client campaigns specifically for profit.

Time

Disruption Agency was spending a great deal of time creating manual product segments for their clients’ PMax campaigns. Creating segments based on margin improved performance, but doing it manually for every client was a major time sink.

The Solution

Disruption Agency began working with ProfitMetrics to save time, improve tracking rates, gain transparency into their clients’ profitability, and achieve the control they needed to optimize for profitability.

They have used ProfitMetrics with multiple clients and their results show how effective they are at using these solutions to greatly improve e-commerce performance. This case study focuses on two long-standing examples: fashion retailer By Stenholt and beauty retailer AVA. AVA had been using ProfitMetrics before starting with Disruption Agency, so their results primarily reflect Disruption Agency’s work with them using ProfitMetrics Shopping Booster.

Tracking

Disruption Agency set By Stenholt up with server-side tracking through ProfitMetrics’ Conversion Booster. This meant their conversions went directly to Google Ads, and none were lost along the way.

Conversion Booster also helped improve By Stenholt’s Performance Max (PMax) campaigns by giving Google’s algorithm a clearer picture of performance, helping it optimize campaigns more effectively.

Through these efforts, Disruption Agency was able to increase their tracking rate by 17% in a matter of minutes!

Profitability

Disruption Agency helped By Stenholt add their cost data to ProfitMetrics (cost of goods, shipping, discounts, payment costs, packaging and handling). This enabled them to calculate the profitability of their clients’ ads in real time using POAS® (profit on ad spend). POAS® = gross profit / ad spend.

Key profitability metrics like gross profit, contribution margin, and net profit were calculated automatically in ProfitMetrics’ Real-time Dashboard, using backend client data. With access to these metrics, Disruption Agency was able to clearly show the bottom-line value of every ad to their clients.

Using metrics like POAS® and net profit as their guide, Disruption Agency was able to determine the most effective campaigns to invest their clients’ budgets into, and avoid wasting ad spend on campaigns that weren’t delivering.

They also used POAS® to improve bidding on their Shopping campaigns. Usually, a Shopping campaign optimizes bids for the highest revenue using ROAS (revenue on ad spend). By switching to POAS®, Disruption Agency helped the algorithm optimize bids for the highest profit instead.

Time

Disruption Agency was able to save the time they were spending creating manual product segments by using ProfitMetrics’ powerful Shopping Booster feature.

Shopping Booster uses rule-based labels to filter products into specific buckets, based on performance, to be promoted in separate campaigns (e.g. all highly profitable products in one bucket/campaign, all low traffic products in another bucket/campaign).

Using Shopping Booster, Disruption Agency was able to further enhance Google’s algorithm by ensuring each bid automatically aligned with each product’s margin. They set this up for both By Stenholt and AVA, optimizing their bidding.

The Results

Year over year comparisons of Q4 2023 and Q4 2024:

ByStenholt

• +17% tracking rate
• +124% overall revenue
• +111% net profit from Shopping campaigns

AVA

• +17% tracking rate
• +138% overall revenue
• +145% net profit from Shopping campaigns

Through working with ProfitMetrics, Disruption Agency was able to make enormous improvements for both their clients and themselves.

They were able to easily show clients the value they were adding, giving ByStenholt and AVA the confidence they needed to scale their ad spend, through which they each greatly increased both the revenue and the net profit of their campaigns.

Finally, Disruption Agency no longer had to spend their time manually segmenting campaigns for PMax. They are now in the process of introducing more clients to ProfitMetrics.