How Profit Optimization Works in Elevar
Overview
Follow this guide to learn how Elevar calculates and delivers profit-based Boosted Events for Profit Optimization. This article explains the data inputs required, how profit is computed at the order level, and how profit values are sent to downstream platforms for bidding, reporting, and optimization.
Required Inputs for Profit Optimization
To calculate profit accurately and consistently, Elevar relies on a combination of merchant-provided data and configurable platform logic. These inputs ensure profit values reflect real business economics rather than surface-level revenue.
Product Cost Data (COGS):
Merchants provide product cost data (COGS) to Elevar, which serves as the primary foundation for profit calculation. This data represents the direct cost associated with each product and is used to determine how much value remains after a sale is completed.
Accurate COGS data allows Elevar to calculate profit at the order level instead of relying on estimated or averaged values.
Profit Margin Fallback:
In cases where product cost data is missing, incomplete, or unavailable, Elevar supports margin fallback rules.
Margin fallbacks allow merchants to define default margin logic that Elevar can apply when exact cost data is not present. This ensures profit calculations remain consistent across all orders, preventing gaps in reporting or optimization due to incomplete inputs.
How Profit Optimization Works in Elevar
How Elevar Calculates Profit;
Once the required inputs are available, Elevar calculates profit automatically for each order as it occurs. Profit is computed in real time using a combination of cost data, discounts, and configured margin fallback.
Specifically, Elevar incorporates the following components into each calculation:
- Product cost (COGS) at the item level
- Discounts applied at the product or order level
- Configured margin fallback logic
Because these calculations happen automatically and in real time, every order includes an accurate profit value at the moment it is processed, without requiring manual intervention or offline reconciliation.
How Profit Is Delivered as a Boosted Event:
After profit is calculated, Elevar packages that value into a profit-based Boosted Event and delivers it to connected platforms.
Boosted Events are designed to integrate seamlessly with existing marketing and analytics workflows, allowing profit to function as a first-class signal without additional tooling.
How Platforms Use Profit Data:
Once profit values are ingested, platforms can use them to improve how performance is evaluated and optimized.
Downstream platforms leverage profit data to support:
- Margin-aware bidding strategies
- Profit-based conversion optimization
- More accurate reporting and attribution
By learning from true business outcomes, platforms can make smarter decisions about where to allocate spend, which audiences to prioritize, and which campaigns deliver sustainable value, rather than treating all revenue as equal.
Updated 14 days ago
