The Attribution Problem
Businesses selling to both trade and retail customers face a unique challenge: the same product generates completely different margins depending on who buys it.
A £100 retail sale at 50% margin generates £50 gross profit. The same product sold to a trade customer at £70 (30% discount) with 35% margin generates £24.50. Yet Google Ads sees both as conversions and optimises accordingly.
When trade and retail share campaigns, the algorithm learns to find "converters" without knowing which type destroys your margin and which builds it.
B2B/trade customers often have higher order values but lower margins. Without proper attribution, you might scale toward revenue while destroying profitability.
Different Economics
Trade and retail customers differ across multiple dimensions that affect campaign economics:
Trade vs Retail Comparison
These differences mean that the "right" ROAS target, bidding strategy, and campaign structure differ fundamentally between audiences.
Retail: Volume, Margin, Speed
Retail campaigns optimise for immediate conversion at high margins. Return risk is real. Repeat rates are lower.
Trade: Relationship, LTV, Volume
Trade campaigns can tolerate lower first-order margin because repeat rates justify acquisition cost. Decision cycles are longer.
Campaign Separation
Proper trade/retail separation requires structural changes:
1. Separate Search Campaigns
Trade-intent keywords ("wholesale," "trade account," "bulk") go to dedicated campaigns with trade-appropriate targets. Generic keywords default to retail.
2. Separate Shopping Feeds
Create distinct product feeds for trade and retail. Trade feeds show trade pricing, link to trade-gated pages, and run with different bidding rules.
3. Audience-Based Separation
Use Customer Match lists of existing trade accounts to create similar audiences. Exclude these from retail campaigns and target them specifically in trade campaigns.
4. Conversion Action Separation
Track trade and retail conversions as separate actions. This allows accurate reporting and proper algorithm training.
Margin-Based Bidding
Different margins require different targets. Here's how to calculate appropriate ROAS goals for each audience:
Break-Even ROAS Calculation
Retail (50% margin): Break-even ROAS = 1 / 0.50 = 2.0x. Target 3.0x for profit.
Trade (25% margin): Break-even ROAS = 1 / 0.25 = 4.0x. Target 5.0x for profit.
However, trade calculations should factor in lifetime value. If a trade customer orders monthly for 3 years, you can afford lower first-order ROAS.
A trade customer with 80% annual retention and 12 orders/year might justify first-order loss if LTV exceeds CAC by 3x or more.
Landing Page Strategy
Trade and retail audiences need different experiences:
Retail Landing Pages
Full pricing visible, add-to-cart focus, urgency messaging, review social proof, immediate checkout optimisation.
Trade Landing Pages
Login gate for pricing, trade account application prominent, bulk order tools, credit terms explanation, account manager contact options.
Trade customers expect trade experiences. Sending them to retail pages with "log in for trade pricing" buried in the footer loses conversions.
Measurement Framework
Proper measurement requires segment-specific reporting:
Track Segment-Specific POAS
Calculate profit on ad spend separately for trade and retail. Blended figures mask segment-level problems.
Include LTV for Trade
Trade customer value extends beyond first order. Build 12-month or 24-month LTV into ROI calculations.
Monitor Cross-Contamination
Track when trade customers convert through retail campaigns and vice versa. Adjust attribution accordingly.
Frequently Asked Questions
How do I separate trade and retail customers in Google Ads?
Use audience segmentation based on customer lists, create separate campaigns for trade-specific keywords (wholesale, bulk, trade account), and implement different landing pages with trade login requirements. Customer Match lists of existing trade accounts help Smart Bidding learn to find similar prospects.
Should trade and retail campaigns have different ROAS targets?
Absolutely. Trade customers typically have lower margins but higher order values and repeat rates. A 2.5x ROAS might be profitable for retail at 50% margin, but you'd need 4x+ for trade at 25% margin unless you factor in lifetime value from repeat orders.
How do I prevent trade customers from seeing retail prices in Google Ads?
Use separate product feeds for trade and retail Shopping campaigns. The trade feed shows trade pricing to logged-in users via custom landing pages. The retail feed runs publicly. Audience exclusions prevent overlap where possible.
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