Purpose
The purpose was to increase bottom-line profitability while maintaining or growing market share.
The objective was to allocate marketing budgets and optimize bidding based on real business value, using profit rather than revenue as the primary performance metric.
Deliverables
The assignment included the implementation of a value-based marketing framework combining bidding, reporting, and budget allocation.
Profit Calculation & Data Integration
A system was implemented to calculate profit per transaction in real time.
This included:
- Integrating data across product costs, logistics, packaging, and customer service
- Calculating order-level profitability
- Feeding profit data into advertising platforms
Value-Based Bidding
Profit data was used to optimize bidding strategies across platforms:
- Google Ads
- Facebook
- Microsoft Ads
Bidding algorithms were adjusted to respond to real-time profitability signals rather than revenue-based metrics.
Reporting & Budget Allocation
A reporting framework was implemented using Google Data Studio.
This enabled tracking of key business metrics, including:
The reporting framework allowed analysis across:
- Channels
- Markets
- Campaign activities
The reporting setup supported budget allocation and enabled more advanced incremental testing.
Strategic reasoning from brief to execution
The strategy focused on shifting from revenue-based optimization to profit-based optimization.
Marketing investments were aligned with real business value by calculating profitability at the transaction level.
Budget allocation and bidding decisions were based on profitability signals rather than volume or revenue.
A holistic approach was applied across channels, combining bidding, reporting, and performance analysis.
Innovation and new thinking
The approach focused on integrating real-time profit data into advertising platforms to guide bidding decisions.
By combining profit calculation, value-based bidding, and advanced reporting, the strategy enabled alignment between marketing performance and business profitability.
The use of profitability metrics across multiple dimensions allowed more precise control over budget allocation and performance optimization.
Deliverables
The assignment included:
- Implementation of real-time profit calculation system
- Integration of profit data into advertising platforms
- Setup of value-based bidding strategies
- Development of reporting framework in Google Data Studio
- Analysis of performance across channels, markets, and activities
- Support for budget allocation and incrementality testing
Services used
- Value bidding & reporting (Kuvio)
- SEM
- Paid Social
- SEO
- Analytics
- Strategy
Client Quote
“Bluebird takes a holistic responsibility for our digital marketing activity and has an overall approach which is different from all other agencies I’ve worked with” — Joel Falck, CEO, KitchenTime
