Ad tech stocks
TBLA2.74▼ -19.41%CPNG17.06▲ +12.02%APP271.75▲ +10.69%TEAD0.28▲ +9.68%SIRI33.40▲ +8.44%LFTO15.69▲ +7.47%MNTN10.39▲ +6.78%RDDT101.81▲ +5.89%SNAP5.91▲ +5.72%AAPL349.51▲ +5.31%OMC87.50▲ +5.21%BABA105.36▲ +4.98%U42.47▲ +4.92%CDLX2.19▲ +4.78%NFLX66.39▲ +4.68%NEXN9.12▲ +4.59%SPOT627.65▲ +4.59%TRU82.14▲ +4.56%BIDU80.43▲ +4.50%VER9.60▲ +4.35%PINS21.22▲ +4.22%18609.52▲ +4.04%APPS9.54▲ +3.81%IBTA62.64▲ +3.79%SFOR41.18▼ -3.78%HAVAS18.45▲ +3.36%PUB104.45▲ +3.26%4755626.30▲ +3.23%GOOGL288.93▲ +3.18%ILLM0.65▲ +3.17%CRTO15.64▲ +3.07%PSKY9.78▲ +2.89%TTD13.23▲ +2.88%SCOR3.29▼ -2.80%ZETA31.78▲ +2.62%AZRN0.60▲ +2.39%STGW11.00▲ +2.23%DEC25.30▲ +2.02%MGNI22.79▲ +2.01%IHRT2.05▼ -1.91%CART59.22▲ +1.56%ROKU162.77▲ +1.50%SNOW290.61▼ -1.50%SAX38.96▲ +1.46%WPP419.20▲ +1.45%META630.00▲ +1.44%DSP13.14▲ +1.39%PUBM16.36▲ +1.30%47511282.50▲ +1.22%43243860.00▲ +1.21%0700401.60▲ +1.11%035420170800.00▲ +1.07%INUV0.44▼ -0.88%RAMP38.50▲ +0.71%24331422.50▲ +0.67%OUT32.46▲ +0.31%PERI11.45▲ +0.26%DV13.56▲ +0.15%CCO2.43▲ 0.00%SST1.77▲ 0.00%WBD30.95▲ 0.00%
Ticker byClearTrust

Google Ads promotions can inflate ROAS while squeezing merchant profits

· 9h ago · Originally reported by Search Engine Land

Search Engine Land explains how promotional activity run through Google Ads can make return-on-ad-spend look better than it really is. Discounts credited within conversions boost reported ROAS, but the underlying margin can shrink, leaving advertisers with weaker profits despite stronger campaign metrics.

Why it matters

ROAS is a common yardstick for ad budgets, and this shows it can paint an overly rosy picture. Advertisers who judge campaigns on ROAS alone may keep spending on promotions that actually reduce their bottom line.

Explain it like I’m new here

It's like bragging you sold lots of lemonade because you gave it away cheap — the sales chart looks great, but your piggy bank is emptier.

Read the original at Search Engine Land

Terms in this story

Go deeper

Related stories