Why Does My ROAS Drop Every Time I Scale Google Ads?
Published
Written by Christopher Krassnig, Founder & CEO of ZenoX Media. Answers every question here from the accounts ZenoX runs, not from theory.
The short answer
If your ads already appear for 80 to 90 percent of buy-now searches, extra budget must reach colder buyers, so ROAS often drops. In accounts ZenoX runs, the first 1 to 2 days after a change can also be slower. We wait before deciding whether the lower return still creates more profit.
Wider Traffic Costs More
A campaign usually reaches its best buyers first. More budget makes Google test new searches and show ads to people who are less ready to buy. Those buyers may cost more or buy less often. In accounts we run, the first 1 to 2 days after a scale are often slower. We let that early swing pass, then compare the extra profit with the extra spend. If the new sales do not cover the new cost, stop increasing and inspect the traffic.
Know When the Lower Funnel Is Full
Impression share is the share of matching searches where your ad appeared. If you already show on 80 to 90 percent of buy-now searches, little proven demand is left. Extra money has to chase colder people, which can lower ROAS even when total profit rises. Check the search terms before adding budget. If the warm demand is full, add another winning product or improve the offer. Another channel can also create new demand for Google to capture later.
Related questions
Keep Going
- How Do I Raise Google Ads Budgets Without ROAS Dropping?
- My Google Ads Account Hit a Plateau. What Do I Do About It?
- What Is a Good ROAS for an Ecommerce Store?
- How Much Should I Budget for Google Ads for a Dropshipping Store?
- Is Hiring a Google Ads Agency Actually Worth It, or Should a Small Store Run It Themselves?
Keep reading
More from the ZenoX team.
On the call, we look at your account live. If we can grow it, we will show you how. If we cannot, we will tell you that too, and point you at someone who can.
We work with brands serious about scale. If that is you, let's talk.
