Definition
Profitmetrics is a tool that calculates the real profit (contribution margin) per order and sends it back to the ad platforms as the conversion value, so bidding can optimize for profit rather than revenue.
Also called: Profitmetrics, Profit MetricsMake events usable.
- 01 / Event
- Describe what happened with a stable name and relevant fields.
- 02 / Validation
- Validate value, currency, ID and consent before forwarding data.
- 03 / Use
- Use consistent data in reporting, segmentation and optimisation.
01Describe what happened with a stable name and relevant fields.
A profit signal to the platforms
Most accounts send revenue back to Meta and Google as the conversion value, and then the algorithm chases revenue, regardless of margin. Profitmetrics changes that by calculating the contribution margin per order (after cost of goods, shipping, fees) and sending it back as the value bidding optimizes for. Same campaigns, same budget, but the machine now chases profit.
It's one of the most underrated technical levers in scaling. Combined with server-side tracking and a clean data layer, it makes POAS management practically possible: budget flows quietly toward the products that actually make money, instead of the ones that simply sell most.
Frequently asked questions
What does Profitmetrics do?
It calculates the contribution margin per order and sends it to Meta and Google as the conversion value, so smart bidding optimizes for profit instead of revenue. It's the core of making POAS management practically possible.
Do I have to use Profitmetrics specifically?
Not necessarily. It's one strong tool, but the principle (sending contribution margin as the conversion value) can be achieved in several ways. What matters is that the platforms bid for real profit rather than revenue.
From insight to action
See how it applies in practice.
Website, channels and profit measurement
The Løgbutikken engagement covered the website, email, Meta, Google Ads and ProfitMetrics. The business grew and was subsequently acquired.
Read the caseMeasurement and customer economics
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About the author
Nicklas Segatz Mortensen
Growth hacker and fractional CMO with 10+ years' experience and hundreds of millions in managed ad spend behind him. Background from larger Danish and international scale-ups, and from the agency world.
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