The Company

Prebo Digital is a digital marketing agency based out of Johannesburg, South Africa. With a focus on strategic, data-driven growth and client collaboration, they partner with retailers to grow their business to the next level.

The Challenge

Prebo Digital wanted to advance their discussions with clients beyond revenue and ROAS, and start talking to clients about the actual profit they were making from their campaigns. They needed a way to reinforce their position as a strategic partner, and validate the decisions they made using backend profit data.

With the increase of privacy constraints and ad blockers, Prebo Digital was also finding gaps in their reporting. Beyond adding profitability metrics, they needed a way to improve how they measured conversions.

The Solution

Prebo Digital started working with ProfitMetrics to:

• Frame meetings around the bottom-line results clients really care about
• Position Prebo Digital as a strategic, tech-forward partner
• Forecast ROI targets by category, based on what actually generates profit for each client
• Improve conversion measurement with server-side tracking.

They first implemented the new approach with their client, Ubergames.de, a premium outdoor games retailer with markets in Germany and the Netherlands. Ubergames.de wanted to improve their conversion tracking and optimize their campaigns for better returns.

Over the next few weeks, Prebo Digital began to use ProfitMetrics with their client:

1. They set up ProfitMetric’s accurate server-side tracking, which connected Ubergames.de’s backend data directly to their Google Ads account.
2. They added Ubergames.de’s variable cost data (discounts, cost of goods, shipping cost, payment cost, packaging and handling) through ProfitMetrics’ API and interface

3. They improved Ubergames.de’s bidding on Google Ads by changing the optimization target from revenue to profit

With this setup, Prebo Digital was able to see the profit behind every ad, campaign, and category, calculated automatically in real-time. They were able to use these profit calculations to transition from ROAS bidding to POAS® (Profit on Ad Spend) bidding.

The Results

The insights Prebo Digital gained from ProfitMetrics enabled them to forecast the profitability of potential campaigns, which in turn made Ubergames.de more confident in scaling their ad spend; they increased their spend by 120% and 140% in the product categories identified as the most profitable.

When Prebo Digital discussed the results of these campaigns with Ubergames.de afterward, Prebo Digital was able to talk about the actual, verifiable impact they achieved.

The speed and ease of the process meant that ProfitMetrics would be a scalable solution for the agency, and a key way to deliver value for more clients.

As for Ubergames.de, ProfitMetrics’ server-side tracking resulted in a 65% increase in conversions reported after just the first 6 weeks.

Combined with the improved bidding and profit-based campaign optimization, this resulted in a 225% increase in Gross Profit.

Following the success they achieved with Ubergames.de, Prebo Digital is now rolling out ProfitMetrics for additional clients, and using the partnership to strengthen pitch meetings.