Choose a bidding target for a mixed-margin catalog
Account for products that support different acquisition costs.
Model contribution by product group
A store sells products that leave $20 and $65 before ads. A $35 acquisition target can be viable for the second group and unprofitable for the first. Start from settled costs and refunds by group.
Calculate the current mix
If 70% of orders leave $20 and 30% leave $65, average contribution is $33.50 before acquisition. A mix shift toward the lower-margin products can reduce that figure even when total revenue holds.
Choose a reporting or bidding split
Separate groups when their economics and volumes justify it. Where data is sparse, monitor the mix before splitting delivery and decide which performance changes warrant an adjustment.
Try a related tool
Estimate what you can pay to acquire an order while reserving a desired contribution. Use consistent per-order inputs.
