Audit checks / E-MRG-03
A product returns less margin than it costs
POAS is ROAS with the margin in it: the value Google reports times what the product makes, over what it cost. Under 1, the product earned less than its ads did, however the ROAS looks. Google alone: Meta reports no purchases by product, so there is nothing to divide.
- Fires when
- POAS is under 1 with at least 2x CPA_t of spend and 20 clicks over 30 days.
- What to do
- Lower the bid or exclude the product.
- How the impact is estimated
- waste = the spend its margin did not pay back, over 30 days: spend x (1 - POAS), at most the spend.
- Platform
- Google Ads, Shopify
- Severity
- high
- Looks back
- 30 days
- Default thresholds (a workspace can change them)
- min_clicks: 20
- spend_x_cpa: 2
- Stays silent below
- min_clicks clicks in 30 days
- a known cost for the product
- spend_x_cpa x CPA_t in 30 days
- Autopilot
- Never applied automatically.