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Send profit as the conversion value, so bidding optimises for what you keep instead of what you turn over.
Overview
This is the point of the exercise. Smart Bidding maximises whatever number you give it. Give it revenue and it will find you revenue, including the orders that lose money on every unit. Give it profit after cost of goods, VAT, shipping, fees and handling, and it optimises for the number you actually run the business on.
How it works
The profit value already sits on the purchase event in your server container, so your Google Ads conversion tag reads it as its value — there is no separate connection to make. Most stores run it as a second conversion action first: profit alongside revenue, both recording, compared for a few days or weeks before you switch over. Values are floored at 1, because Ads rejects a negative and treats a zero as a conversion worth nothing.
How to configure
Create a second conversion action for profit, with value on.
In your server container, point that tag's conversion value at the profit variable.
Leave it secondary while you compare it against revenue.
Move your bidding strategy onto it when the two weeks of data agree. (Optional of course)
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