Profit-First Bidding

Our bid optimization algorithm is built on a simple but powerful principle: your advertising should be profitable. Instead of blindly chasing sales or impressions, we calculate the maximum you can spend on ads while still making money on each sale. The algorithm uses five key factors: 1. Unit Economics (COGS, margins, break-even ACOS) 2. Inventory Status (days of supply, velocity zones) 3. Organic Rank (reduce paid spend where organic visibility exists) 4. CPC Gap Analysis (actual vs target CPC) 5. Placement Optimization (RPC-based placement modifiers)

The algorithm calculates your optimal bid through these steps: 1. Effective Target ACOS = Break-Even ACOS × Profit Retention × Inventory Modifier 2. Target CPC = RPC × Effective Target ACOS × Organic Modifier 3. Recommended Bid = Current Bid × (1 + CPC Gap Modifier) Each factor adjusts your bid based on real business conditions.