CUSTOMER STORIES
Baby Village is an Australian baby retailer offering a curated range of trusted products across prams, car seats, nursery, feeding and everyday essentials.
Intro
Infant retail is unforgiving. Margins are thin, competition is constant, and the products parents need don't exactly follow a predictable seasonal rhythm. For Baby Village, a well-established online retailer for baby essentials, the challenge wasn't getting traffic it was figuring out how to spend more on advertising without quietly bleeding profitability in the process.
The actual problem: optimising for the wrong number
Every time they tried to scale the budget, something gave way: diminishing returns, or worse, a spike in sales for their lowest-margin products. ROAS looked fine on paper. The business underneath it told a different story.
Baby Village's team was chasing ROAS. It's a reasonable instinct, it's what the platforms show you, what agencies report on, and it's easy to understand. The problem is that ROAS doesn't tell you which sales actually made money. You can hit a great ROAS number while spending most of your budget pushing products that barely cover their costs.
What they needed was profit visibility at the product level, not revenue, not clicks, not attributed conversions. Which products were actually worth scaling?
Rebuilding the Google strategy around profit, not ROAS
Baby Village brought in ProfitPeak to rebuild their Google campaign strategy from the ground up. The shift was straightforward in concept, harder to execute without the right data: stop optimising for platform-reported ROAS and start optimising for PROAS (Profit Return on Ad Spend).
ProfitPeak's Product Intelligence segmented their catalogue automatically, flagging which products had the margins worth pushing. Those tags fed directly into their Shopify product feed, which meant campaign bidding and budget allocation were now weighted toward the products that actually moved the needle on profit, not just revenue.
With that visibility in place, the team did something that would have felt reckless before: they scaled aggressively. But this time they knew exactly what they were scaling.
I believe the standout change was definitely the restructure of our Google Ads account using ProfitPeak's product tagging. That really shifted performance for us. It's made our advertising incredibly dynamic and product-led, and honestly feels like a very advanced and scalable way to approach bidding and allocation.
Julien Darmanthé, Digital Marketing Manager, Baby Village
Scaling aggressively with the margins intact
Compared to the month prior, across Black Friday Cyber Monday:
Contribution profit up 64%
Net sales up 88%
Orders up 62%
Average order value up 16%
New customers up 73%
Those aren't vanity metrics tidied up for a case study. Contribution profit going up 64% while revenue goes up 88% means the quality of the growth held, the part that usually breaks when you push spend hard.
Baby Village didn't find a shortcut. They just stopped flying blind. When you know which products are profitable and your campaigns are built around that, scaling stops being a gamble.
Industry
Baby and Kids
Company size
11-50
From ad to product to profit
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See how leading commerce teams are using ProfitPeak to protect margin, improve advertising ROI and scale with more confidence.
