# Margin-Based Campaign Management

### 1. Business Value: Guarantee actionable and certified data

Moving from volume-based management to real value-based management transforms your media efficiency into a direct profitability lever.

* **Real ROAS Optimisation:** AI learning algorithms prioritise sales that generate profit rather than those that artificially inflate turnover (e.g. discounted products).
* **Smart budget allocation:** Your budgets are automatically redirected to the most lucrative products and customer segments.
* **Profitability control:** You avoid over-investing in products whose margins are too low to absorb acquisition costs (CPA).

### 2. Implementation methodology

#### Step A: Cost data retrieval (Server Feed)

The CDP centralises sales prices (via TMS and Datacommander Tag) and cross-references them with your cost data imported from your ERP.

* **Action**: Create a calculated property in the CDP:
* **Documentation**: [Augmented User Attributes](https://doc.commandersact.com/features/enrichments/augmented-user-attributes)

#### **Step B: Conversion value calculation (CDP)**

The CDP assigns each transaction its actual margin value, which becomes the reference ‘conversion value’.

* Action: Configure the automatic calculation rule for each validated `purchase` event.
* **Documentation**: [Event enrichment.](https://doc.commandersact.com/features/enrichments/events-enrichment)

#### **Step C: Transmission to platforms (server-side connectors)**

Via its API connectors (CAPI Meta, Google Enhanced Conversions), the CDP sends the margin value to advertising algorithms in real time.

* **Action**: Map the ‘Margin’ variable as the primary conversion value in your media destinations.

#### **Step D: Profit analysis and management**

Track the evolution of your net profit per channel directly in your performance reports.

### 3. Typical use cases

1. **Retail (Sales):** A product at 50% off generates revenue but little margin. The CDP reports this low profitability to Google Ads, which reduces bids to preserve your profit.
2. **Fashion/Textiles:** The CDP deduces the average return rate per category from the margin provided. The algorithms focus on items that are actually kept.
3. **B2B/Services**: Manage campaigns based on the estimated margin value of each potential contract rather than simply on the volume of leads.

### Need help making your data flows more reliable?

Margin-based management is the ultimate step in data maturity. Our experts will help you reconcile your cost data and configure your API connectors.

**Contact our support team:** <support@commandersact.com>