Audit checks / E-MRG-01
Ad spend on a product that makes no margin
A product can sell well and still lose money on every order, once its cost or a standing discount is counted. Ads then pay to lose more of it. The margin is what the sales made after discounts and returns, or what price and cost say where it has not sold. A product with no known cost is left out.
- Fires when
- A product whose margin is zero or less got at least 1x CPA_t of spend over 14 days.
- What to do
- Exclude the product from the campaign.
- How the impact is estimated
- waste = the product's spend over 14 days, normalized to 30. Each sale it brings loses money before the ad is paid for.
- Platform
- Google Ads, Meta, Shopify
- Severity
- high
- Looks back
- 14 days
- Default thresholds (a workspace can change them)
- days: 14
- spend_x_cpa: 1
- Stays silent below
- a known cost for the product
- spend_x_cpa x CPA_t in the window
- Autopilot
- Never applied automatically.