Budget-Limited Campaigns Lose 20% ROAS Surplus in Three Weeks, smec Reports
· 2h ago · Originally reported by PPC Land
smec observed that budget-limited campaigns at a UK homeware retailer saw their return on ad spend (ROAS) surplus drop by 20% within three weeks, as cost-per-clicks (CPCs) jumped from 17p to 27p in a single week. Meanwhile, competitors unaffected by these changes increased their target ROAS.
Why it matters
This highlights how quickly digital ad campaign performance can shift, especially around key retail periods, and how changes in CPCs can impact overall efficiency and strategy.
Explain it like I’m new here
It's like spending more money on lemonade stand signs but getting fewer customers, while your friends with bigger budgets do better.
Terms in this story
Campaign
A campaign is an organised set of ads with a shared goal, budget, audience and time period, run across one or more channels and measured against defined KPIs.
ROAS (return on ad spend)
ROAS (return on ad spend) is the revenue generated by advertising divided by the money spent on that advertising, usually shown as a ratio like 4:1 or 400%.
CPC (cost per click)
CPC (cost per click) is a pricing model where the advertiser pays only when someone clicks the ad, and also the average amount paid per click.
Go deeper
Related stories
Meta Ads Manager Adds 7 Product-Level Metrics for Catalog Campaigns
Meta Ads Manager has introduced seven new product-level metrics for catalog campaigns, including spend, clicks, views, and attributed orders per product. These metrics are now visible in campaign charts, though Meta has not yet provided…
Comscore Introduces Monthly Report Tracking TV Advertising Exposure Trends
Comscore has launched a new monthly report focused on analyzing trends in TV advertising exposure. The report aims to provide regular insights into how audiences are engaging with TV ads over time.
MINT Square and Adsquare Collaborate on Geo-Contextual Targeting and POS Measurement
MINT Square has formed a partnership with Adsquare to enhance geo-contextual targeting and point-of-sale (POS) measurement capabilities. The collaboration aims to provide advertisers with improved tools for reaching audiences based on…
Brands Face Challenges Measuring Omnichannel ROI During Festive Season
Brands encountered difficulties in accurately attributing sales and marketing impact across multiple channels during the festive season. The complexity of tracking consumer journeys across online and offline touchpoints made it hard to…
IAB Opens Public Comment on Ad Measurement Conflict Resolution Guide
The IAB has released a draft guide to help marketers resolve conflicts between different ad measurement methods, such as MMM, incrementality tests, and attribution. Marketers have 15 days to submit feedback before the comment period closes…
Creative Health Score Rates Ad Freshness Using Performance Metrics
A creative health score is a 0-100 rating used by ad tools to indicate if an ad is still effective or becoming stale. The score is calculated using data such as click-through rate, cost per thousand impressions, ad frequency, and how long…