Ads That Chase Profit
Imagine knowing where your next DKK of ads earns the most.
On Steer, with an ad budget split by each country's share of sales?
One country? Steer already shows what your ads earn there, so you don't need this.
Your ad budget follows sales, so Germany gets too much.
| Country | Ad spend | What the last 100.000 DKK earned | |
|---|---|---|---|
| Sweden | 200.000 DKK | 55.000 DKK | |
| Norway | 150.000 DKK | 27.000 DKK | |
| Denmark | 400.000 DKK | 7.000 DKK | |
| Germany | 350.000 DKK | −18.000 DKK |
Expected contribution profit from each country's last 100.000 DKK of ads, once those ads are paid for.
Built on Steer's numbers
Each country's figure starts from what Steer already works out for every order, so there's nothing new to set up.
In your own admin
You get the budget in your admin, with the same figures available to your own AI.
Set again before a season
Plan next season's budget with the latest sales and spend.
Today, 350.000 DKK
| Earned before ads | 529.000 DKK |
|---|---|
| The ads | −350.000 DKK |
| Left after ads | 179.000 DKK |
At 200.000 DKK
| Earned before ads | 400.000 DKK |
|---|---|
| The ads | −200.000 DKK |
| Left after ads | 200.000 DKK |
Expected contribution profit a month from the sales Germany's ads bring in.
Germany sells more than it earns.
Germany is one of your biggest markets, so it gets one of the biggest budgets. Steer already shows Germany's returns. A budget split by share of sales ignores them.
At 200.000 DKK a month, Germany sells about 320.000 DKK less. How far to cut is a call for you and your marketing lead, and you can see what each step leaves you.
What each order earns, which every budget here starts from, is worked out in Steer by Profit, Not Sales.
The same 1.100.000 DKK could earn about 42.000 DKK more a month.
- Today
- Ad spend a month 200.000 DKK
- Expected contribution profit a month 329.000 DKK
- Earns the most
- Ad spend a month 350.000 DKK
- Expected contribution profit a month 350.000 DKK
In Norway and Denmark, the last 100.000 DKK earned a profit. The next 100.000 DKK in either country would cost more than it earns. Move 150.000 DKK from Germany to Sweden, keeping the monthly total at 1.100.000 DKK.
A level for each country
Where each country earns the most, with what it earns there.
Growth you can price
From 350.000 to 450.000 DKK, Sweden's ads bring about 13% more sales for about 6.000 DKK less a month.
A ceiling your team works to
Your marketing lead knows how far each country can go before moving any money.
Check what a change will earn before anyone moves the money.
What if we cut Germany's ad budget from 350.000 DKK to 200.000 DKK a month?
+21.000 DKK
more expected contribution profit a month. Germany earns 200.000 DKK instead of 179.000 DKK a month, with about 320.000 DKK less in sales.
From each country's curve, with expected contribution profit from Steer.
Each change in view
You and your marketing lead can compare each country's budget with what it would earn.
Your agency plans on it too
Share the budget with your agency, so you both work from the same figures.
Answers any day
Ask your own AI what a budget change in any country would earn.
- 4%
of the ad budget back as profit
A budget set as a share of sales leaves 2 to 6% of it in profit on the table. About 4% of a typical ad budget comes back as profit.
The 4% is based on a typical ad budget set as a share of sales across several countries.
One of the tools you can ask for in Tools as a Service.
How to set the budget without handing your ads to another agency
The tool shows what to spend in each country. You and your marketing lead choose the budget. Your team or agency keeps running the ads and moves the money. It's part of your Tools as a Service subscription. A bigger ad budget earns me nothing.
How to get this tool
Ask for it in Tools as a Service. It uses Steer's numbers, so you need Steer. Add it to your list and choose its place. I build one tool at a time.
Tell me which country gets most of your ad budget.
Write a few lines about the business and what you can't answer today. I'll reply myself, and if it's a fit we book a call.