The Challenge

Fashionbystrand planned to significantly scale their ad spend and grow their business, but two obstacles stood in their way:

• Their client-side tracking setup left many conversions untracked, which decreased data accuracy and weakened the performance of their bidding strategies.
• They lacked clear insight into the profitability of their ads.

Like many retailers, Fashionbystrand was hesitant to make significant investments without an accurate understanding of the returns - not the revenue, not the ROAS, but the actual profitability.

They needed to ensure all their conversions were tracked, and gain visibility into the profit of their promotions so they could commit their ad spend where it would be most effective.

The Solution

Fashionbystrand worked with ProfitMetrics to clear these obstacles so they could begin scaling with confidence.

Incomplete tracking

They solved the first challenge in about five minutes by implementing ProfitMetrics’ accurate server-side tracking.

After connecting their platform and linking their marketing channels, Fashionbystrand was able to send their conversions to Google Ads and Meta directly. This meant they could track 100% of their conversions, rather than the ≈ 80% that most retailers track with a standard, client-side set up.

Now that they had access to every (consented to) conversion, Fashionbystrand could expect improved performance from the bidding algorithm.

Identifying profitability

Next they added their cost data into ProfitMetrics, enabling them to calculate the actual profitability of their ads, accounting for factors like cost of goods, shipping, and discounts.

With this data they were able to start using POAS® (profit on ad spend), a metric created by ProfitMetrics to measure gross profit divided by ad spend. POAS® is a far more accurate measure of success than ROAS (revenue on ad spend), because it takes all those other costs into account.

If an order has a POAS® of 2, it means that every euro spent advertising it brought back €2 in profit.

Fashionbystrand added POAS® metrics to their Google Ads and Meta with Custom Columns, allowing them to keep their marketing spend efficient and effective through an understanding of how it affected the bottom-line.

They also used ProfitMetrics’ Real-time Dashboard to visualize the profitability of their campaigns on a daily, weekly, and monthly level. From here they could monitor their contribution margin–the profit after ad spend–and their blended POAS, a measure of the overall profitability of the business.

With their improved tracking and new insight into where to focus their ad spend, Fashionbystrand was able to begin scaling aggressively.

The Results

During Q2 2024, Fashionbystrand experienced significant growth and greatly improved profits.

Year over year comparison of Q2 2024:

• +154% ad spend
• +90% topline revenue 
• +27% net profit

ProfitMetrics' accurate server-side tracking and POAS solution enabled Fashionbystrand to make stronger decisions, and more than double their business, transforming a period of financial challenges into one of substantial growth.