> For the complete documentation index, see [llms.txt](https://docs.bloomanalytics.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bloomanalytics.io/country-profits/country-profit-margin.md).

# 📈  Country Profit Margin

### 🗂️  Country Segmentation

Bloom groups countries into four segments based on profitability after the ad spend.

![](/files/A02QGkFnKNnCMFFrJ3u0)

<table><thead><tr><th width="135.20001220703125">Segment</th><th>What It Means</th></tr></thead><tbody><tr><td>🚀 Scale</td><td>Healthy margin after ads. Scale – Healthy margin after ads, profitably absorbing marketing investment, so this is where you increase the budget.</td></tr><tr><td>⏸️ Hold</td><td>Thin margin after ads. Hold – Thin margin after ads; profit exists but is slim once ad costs are included, so monitor before increasing spend.</td></tr><tr><td>✂️ Fix or Cut</td><td>Losing money on ads. Fix or Cut – Losing money on ads, ad spend exceeds profit generated, so reduce spend or fix underlying cost issues immediately.</td></tr><tr><td>🧪 Test Ads</td><td>Profitable with no ad spend.Test Ads – Profitable with no ad spend, unit economics work without marketing, making these good candidates for a pilot ad campaign.</td></tr></tbody></table>

Each segment card shows the number of countries in that category and their combined profit (CM3 - profit after ad spend) or loss.

<figure><img src="/files/WSzJ91AKg5LAomUj2s7I" alt=""><figcaption></figcaption></figure>

⚙️ CM3 Threshold: Set a CM3 Threshold percentage in the top-right corner of the page. Bloom uses this as a benchmark to classify countries into segments; any country falling below the threshold will not qualify.<br>

### 💡  Insights

Bloom automatically generates insights based on ad performance and profitability trends.

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<img src="/files/usQiavuqYjfceg3COgE5" alt="" height="331" width="412">

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* ✂️  Fix or cut  Flags countries where ad spend is causing a net loss; recommends reducing spend or addressing cost issues immediately.

* 🧪  Test ads identify countries profitable with no or minimal ad spend, suggesting they are ready for a pilot campaign.

* 📉  ROAS declining. Highlights countries where Return on Ad Spend has dropped significantly vs. the previous period; ads are becoming less efficient.

* 📈  Improving  Calls out countries where profit after ads (CM3) has increased significantly vs. the previous period; markets responding well to current strategy.

### 📊  Charts

#### Profit vs Ad Spend by Country

A bubble chart comparing each country's profit before ads (CM2, x-axis) against profit after ads (CM3, y-axis). Bubble size reflects the relative scale of the country's business. Countries positioned higher and farther to the right have both strong underlying economies and effective marketing. Countries near or below the zero line on the y-axis have their profits consumed by ad spend, helping you pinpoint whether underperformance is a marketing or an operational issue.

<img src="/files/fAXWBOaecCed8ZNmzVGe" alt="" height="197" width="624">

#### Where Is The Money Going?

A stacked bar chart breaking down each country's revenue into three components, showing the full cost picture including marketing spend.

<img src="/files/gKGOdwKxQSRjIG2QUCzh" alt="" height="307" width="624">

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<table><thead><tr><th width="169.5999755859375">Layer</th><th>What It Shows</th></tr></thead><tbody><tr><td>🧾 Overall Cost</td><td>All operational costs (product, shipping, handling, transaction, tariffs) before marketing.</td></tr><tr><td>📣 Ad Spend</td><td>Total advertising spend attributed to that country.</td></tr><tr><td>✅ Profit After Ads (CM3)</td><td>What remains as profit after both operational costs and ad spend.</td></tr></tbody></table>

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### 📋  Country Details Table

A detailed table listing every country with its segment status and ad-related performance metrics.

<img src="/files/S4Xlamgpa9bhtDJ4NBx0" alt="" height="219" width="646">

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<table data-search="false"><thead><tr><th width="180.800048828125">Column</th><th>Description</th></tr></thead><tbody><tr><td>🌍 Country</td><td>The market name.</td></tr><tr><td>🏷️ Status</td><td>Segment classification — Scale, Hold, Fix or Cut, or Test Ads.</td></tr><tr><td>💬 Suggested Action</td><td>Auto-generated recommendation based on CM3 and ROAS (e.g. 'add budget,' 'run pilot campaign,' 'cut spend or fix costs').</td></tr><tr><td>💰 Net Revenue</td><td>Revenue after discounts and refunds.</td></tr><tr><td>📊 CM2</td><td>Contribution Margin 2 — profit before ad spend.</td></tr><tr><td>📣 Ad Spend</td><td>Total advertising spend attributed to that country.</td></tr><tr><td>📈 CM3</td><td>Contribution Margin 3 — profit after ad spend, with period-on-period change.</td></tr><tr><td>📈 CM3 %</td><td>CM3 as a percentage of net revenue.</td></tr><tr><td>🎯 ROAS</td><td>Return on Ad Spend — revenue generated per unit of ad spend, with period-on-period change.</td></tr><tr><td>💵 CPA</td><td>Cost Per Acquisition — average ad spend per order for that country.</td></tr></tbody></table>

⬇️ Export Button: Use the export icon in the top-right corner of the table to download the Country Details Table for offline reporting or sharing with your team.

<figure><img src="/files/C3FMYJbvtHIwfF31Iw6Q" alt=""><figcaption></figcaption></figure>

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