Profitability with gross margin analysis
Factor in cost of goods sold data to analyze gross margins at the product level for visibility into true profitability.
Objective
Conduct a comprehensive analysis of product-level profitability by factoring in cost of goods sold (COGS) data to calculate and analyze gross margins. This analysis provides crucial visibility into true profitability, enabling advertisers to make informed decisions about product promotion, pricing strategies, and advertising spend allocation. By understanding the relationship between advertising costs, sales revenue, and gross margins, advertisers can optimize their retail media strategies to maximize overall profitability.
Key benefits
Improved ROI optimization
Enhanced pricing strategies
Better inventory management
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How it works
Calculate product-level gross margins by integrating sales, advertising costs, and COGS data from retail media platforms. Analyze profitability trends to optimize ad spend, adjust pricing strategies, and maximize overall ROI across marketplaces.
Data integration
Use mimbi COLLECT to import detailed sales data, advertising costs, and cost of goods sold (COGS) information from various sources such as databases, files, inventory management systems, and retail media networks. Ensure data is collected at the individual product level for granular analysis.
Gross margin calculation
Leverage mimbi TRANSFORM to calculate gross margins for each product. Also, calculate advertising-adjusted gross margin by factoring in ad spend: Adjusted gross margin = (Revenue - COGS - Ad spend) / Revenue.
Profitability analysis and visualization
Perform in-depth analysis of gross margins and adjusted gross margins across different products, categories, and campaigns. Create visualizations such as scatter plots, heat maps, and bar charts to illustrate profitability trends and identify high and low-performing areas.
Strategy optimization and implementation
Develop and implement optimized advertising and pricing strategies. Automatically adjust bid strategies, budget allocations, and even suggest pricing modifications to maximize overall profitability.
Automated retail media metrics calculation
Pricing impact on customer acquisition
Profitability with gross margin analysis
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