De’Longhi, a global leader in premium coffee machines and household appliances since 1902, operates in over 120 countries with a reputation for Italian innovation. Partnering with Cosmo5 Group company Storeis, De’Longhi sought to advance its digital maturity by transforming its advertising strategy to prioritize profit over revenue. Historically reliant on return on ad spend (ROAS), the brand recognized that ROAS failed to account for product margins or cost of goods sold (COGS), often masking true campaign profitability.
The Challenge
De’Longhi aimed to ensure its digital investments delivered measurable business value by focusing on two objectives:
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Increase return on advertising investment by prioritizing profit over revenue.
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Attract a more economically relevant audience to drive sustainable growth.
The challenge was to move beyond a revenue-centric model and build an infrastructure to track and optimize for actual profit, ensuring campaigns aligned with long-term business goals.
Our Approach
We collaborated with De’Longhi to implement a structured, three-phase strategy to shift toward profit-centered advertising:
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Technical Implementation: De’Longhi coordinated internal teams to deploy a new conversion tag for tracking net profit from online sales, establishing a foundation for profit-based campaign optimization.
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Management & Monitoring: Validated profit-tracking data to ensure accuracy, resolving anomalies to maintain reliable campaign performance insights.
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Profit-Based Optimization: Transitioned to profit bidding using Profit on Ad Spend (POAS) as the core metric, moving away from revenue-based models to focus on sustainable, margin-driven growth.
This approach enabled precise, data-driven decisions aligned with De’Longhi’s profitability goals.
The Impact
The shift to profit bidding transformed De’Longhi’s digital advertising approach, prioritizing real profitability over revenue. A dedicated Looker Studio dashboard provided full visibility into campaign performance, empowering smarter budget allocation. The strategy increased final margins, reduced the impact of product costs on advertising-driven revenue, and positioned digital advertising as a key driver of overall company profitability.
9%
Increase in ecommerce sales margins across activated markets
