u/SplitPleasant3618

▲ 2 r/dtc

ROAS dropped but nothing changed in Ads Manager

I had a client go from 2.4x ROAS to 0.8x in six days with the same ads, same budget, same audience. Their CTR and CPC was fine, and nothing in the ad account explained why sales had suddenly disappeared.

They'd raised their prices.

The ads were still showing the old price. People saw the ad, liked the product, clicked through expecting one price, then landed on the store and got hit with a higher one. Of course conversion rate died lol. The weird part was the ads themselves still looked completely healthy.

Took about 10 minutes to find once I stopped digging through the ad account and actually went through the store like a customer.

I think people blame Meta way too quickly when this happens. ROAS tanks and suddenly they're changing campaigns that were working perfectly fine a few days ago. But if people are still clicking at the same rate, whatever broke might've happened AFTER the click.

This only holds if spend stayed steady. If you scaled budget during that window, ignore all of this because that's a different problem

The split is whether CTR held while cost per add to cart climbed. If CTR held, whatever broke is after the click. If CTR dropped too, it's a completely different problem and the fix has nothing in common with this one.

reddit.com
u/SplitPleasant3618 — 9 days ago

Your CPM went up. So what?

I think CPM is one of the most misunderstood metrics in Meta ads. People see it jump from $25 to $35 and immediately think something is wrong. The audience is bad. Meta hates the campaign. We need to change targeting. We need to lower the budget. SOMETHING needs to happen.

Meanwhile, the campaign could literally be making you more money.

That's because CPM and CPC tell you two completely different things, and if you don't know what each one is actually telling you, it's really easy to start "fixing" stuff that isn't broken.

CPM is simply the cost of showing your ad 1,000 times. That's it. It tells you how expensive your impressions are. It does NOT tell you whether those impressions are actually profitable.

A $20 CPM isn't automatically good, just like a $40 CPM isn't automatically bad. I can get you dirt cheap impressions in front of people who couldn't care less about your product. Congrats, we saved money showing the ad to people who aren't buying lol.

On the other hand, you might have a more expensive CPM because you're competing for a valuable audience, you're getting more expensive placements, or the auction is simply more competitive right now. If those people are actually clicking and buying, I really don't care that the impression itself cost more.

This is where CPC starts telling us something completely different. CPC is what you're actually paying to get someone to CLICK. Now we're measuring whether the ad is compelling enough to make someone do something instead of just how expensive they were to reach.

If my CPC is high and my CTR is low, okay, now I'm looking at the ad itself. People are seeing it, but they're not interested enough to click. Maybe the hook sucks. Maybe the creative isn't stopping anyone. Maybe the copy isn't giving them a reason to care. Whatever it is, we're paying to get in front of people and they're basically going "eh" and scrolling past.

But here's where people get themselves into trouble. Let's say your CPM goes up 30%. Looks horrible, right?

Well, I had almost this exact situation recently. We launched a new creative variant and its CPM came in about 30% higher than the original. If I only looked at CPM, I'd assume the new creative was worse and probably start thinking about shutting it off.

Except its CTR was HIGHER. And its CPA was less than HALF of the original. So which ad would you rather run?

The one with the pretty CPM that's more expensive to acquire customers with, or the "bad" CPM that's getting customers for less than half the price?

That's why I never look at CPM in isolation. It can tell you something useful, but it needs context. If CPM jumps while CTR stays strong and CPA stays stable or improves, I'm not panicking. The auction might just be more expensive. If I'm still acquiring customers profitably, who cares?

Now, if CPM keeps climbing AND CPA starts climbing with it, that's when I start paying attention. And this is where creative testing becomes WAY more important than people realize.

Most people think testing more creatives is purely about finding the ad that gets the most sales. Obviously that's part of it, but there's another reason I constantly want fresh creatives going into the account.

Meta's auction isn't just looking at who will pay the most money for an impression. It's also predicting which ads people are actually likely to engage with. If Meta thinks people are going to respond well to your ad, that can help you compete more efficiently for delivery.

This is why two creatives targeting basically the exact same people can have completely different CPMs.

One has been running forever. People have seen it 14 times. Engagement starts falling off, Meta has less reason to keep favoring it, and suddenly you're paying more and more to reach the same type of person.

Then you launch something fresh that people actually respond to and Meta can deliver it more efficiently.

That's the part I think people miss when CPM starts creeping up. They immediately go mess with the budget or start rebuilding audiences when sometimes the answer is MUCH simpler.

Give Meta better ads to work with.

If you're sitting there with the same one or two creatives you've been running for weeks and your CPM AND CPA are steadily climbing, I wouldn't immediately start tearing apart your targeting. I'd test more creatives.

Test new hooks, new visuals, new angles, and new ways of presenting the same product. Give the algorithm more chances to find something people actually want to engage with.

Because creative testing isn't only about finding the ad that converts better. You're also trying to find ads that Meta can deliver efficiently.

So if your CPM randomly jumps tomorrow, don't immediately freak out. Check your CPA, your CTR, and your CPC.

If CPM went up but people are still clicking and you're acquiring customers profitably, you might not have a problem at all.

If CPM AND CPA keep climbing together, then yeah, something needs attention. But before you rebuild your targeting or start messing with budgets, look at how long you've been feeding Meta the same creatives.

reddit.com
u/SplitPleasant3618 — 12 days ago

Your CPM went up. So what?

I think CPM is one of the most misunderstood metrics in Meta ads. People see it jump from $25 to $35 and immediately think something is wrong. The audience is bad. Meta hates the campaign. We need to change targeting. We need to lower the budget. SOMETHING needs to happen.

Meanwhile, the campaign could literally be making you more money.

That's because CPM and CPC tell you two completely different things, and if you don't know what each one is actually telling you, it's really easy to start "fixing" stuff that isn't broken.

CPM is simply the cost of showing your ad 1,000 times. That's it. It tells you how expensive your impressions are. It does NOT tell you whether those impressions are actually profitable.

A $20 CPM isn't automatically good, just like a $40 CPM isn't automatically bad. I can get you dirt cheap impressions in front of people who couldn't care less about your product. Congrats, we saved money showing the ad to people who aren't buying lol.

On the other hand, you might have a more expensive CPM because you're competing for a valuable audience, you're getting more expensive placements, or the auction is simply more competitive right now. If those people are actually clicking and buying, I really don't care that the impression itself cost more.

This is where CPC starts telling us something completely different. CPC is what you're actually paying to get someone to CLICK. Now we're measuring whether the ad is compelling enough to make someone do something instead of just how expensive they were to reach.

If my CPC is high and my CTR is low, okay, now I'm looking at the ad itself. People are seeing it, but they're not interested enough to click. Maybe the hook sucks. Maybe the creative isn't stopping anyone. Maybe the copy isn't giving them a reason to care. Whatever it is, we're paying to get in front of people and they're basically going "eh" and scrolling past.

But here's where people get themselves into trouble. Let's say your CPM goes up 30%. Looks horrible, right?

Well, I had almost this exact situation recently. We launched a new creative variant and its CPM came in about 30% higher than the original. If I only looked at CPM, I'd assume the new creative was worse and probably start thinking about shutting it off.

Except its CTR was HIGHER. And its CPA was less than HALF of the original. So which ad would you rather run?

The one with the pretty CPM that's more expensive to acquire customers with, or the "bad" CPM that's getting customers for less than half the price?

That's why I never look at CPM in isolation. It can tell you something useful, but it needs context. If CPM jumps while CTR stays strong and CPA stays stable or improves, I'm not panicking. The auction might just be more expensive. If I'm still acquiring customers profitably, who cares?

Now, if CPM keeps climbing AND CPA starts climbing with it, that's when I start paying attention. And this is where creative testing becomes WAY more important than people realize.

Most people think testing more creatives is purely about finding the ad that gets the most sales. Obviously that's part of it, but there's another reason I constantly want fresh creatives going into the account.

Meta's auction isn't just looking at who will pay the most money for an impression. It's also predicting which ads people are actually likely to engage with. If Meta thinks people are going to respond well to your ad, that can help you compete more efficiently for delivery.

This is why two creatives targeting basically the exact same people can have completely different CPMs.

One has been running forever. People have seen it 14 times. Engagement starts falling off, Meta has less reason to keep favoring it, and suddenly you're paying more and more to reach the same type of person.

Then you launch something fresh that people actually respond to and Meta can deliver it more efficiently.

That's the part I think people miss when CPM starts creeping up. They immediately go mess with the budget or start rebuilding audiences when sometimes the answer is MUCH simpler.

Give Meta better ads to work with.

If you're sitting there with the same one or two creatives you've been running for weeks and your CPM AND CPA are steadily climbing, I wouldn't immediately start tearing apart your targeting. I'd test more creatives.

Test new hooks, new visuals, new angles, and new ways of presenting the same product. Give the algorithm more chances to find something people actually want to engage with.

Because creative testing isn't only about finding the ad that converts better. You're also trying to find ads that Meta can deliver efficiently.

So if your CPM randomly jumps tomorrow, don't immediately freak out. Check your CPA, your CTR, and your CPC.

If CPM went up but people are still clicking and you're acquiring customers profitably, you might not have a problem at all.

If CPM AND CPA keep climbing together, then yeah, something needs attention. But before you rebuild your targeting or start messing with budgets, look at how long you've been feeding Meta the same creatives.

reddit.com
u/SplitPleasant3618 — 12 days ago

Your daily ROAS is lying to you

You had a 2.1x yesterday. Today you're at 1.5x. So naturally, you open Ads Manager 14 times, stare at the campaign wondering what the hell happened, and start debating whether you should shut it off before it gets any worse. Please don't lol.

This is one of the easiest ways I see brands turn a perfectly decent ad account into a mess. If you're doing 5 to 15 orders a day, your daily ROAS is going to bounce around a LOT, and most of those swings mean way less than you think they do.

Think about the actual numbers for a second. Let's say you normally get 10 orders a day. Today you get 8. Tomorrow you get 11. That's enough to make your ROAS move 10%, 15%, sometimes 20% depending on your AOV. Did your ads suddenly get 20% worse on Tuesday and magically fix themselves on Wednesday? Of course not. You got a couple fewer orders, that's it.

And the lower your order volume is, the crazier this gets. If you're only doing 5 orders a day, ONE purchase makes up 20% of your daily order volume. One person deciding to buy tomorrow instead of today can make you open Ads Manager and think something is broken.

This is why I hate making decisions based on individual days. Because I know exactly what happens. You wake up, check yesterday's numbers, see a 1.5x when you've been doing a 2x, and immediately start looking for something to fix. Maybe the creative is fatigued. Maybe I need to change the targeting. Maybe this campaign is dying. Maybe I should pause it before I waste another $300.

Meanwhile, nothing is actually wrong. You just had a bad Tuesday.

What I care about way more is the average over a real window. Usually I'm looking at two to four weeks depending on how much volume the account is doing. If the average is climbing over that period, great. The account is moving in the right direction. I genuinely don't care if Wednesday sucked.

There are going to be ugly days inside a good month. There are also going to be random days where you absolutely print money. Neither one tells me much by itself. Now if your average ROAS has been declining week after week, okay, NOW we have something to look at because that's a trend.

There's a massive difference between a bad day and a bad trend, and knowing the difference will save you from making a lot of stupid decisions.

I was looking at an account recently where blended ROAS was bouncing between roughly 1.47x and 2.70x across different days that week. That's a pretty big swing. If you happened to check on the 1.47x day, you'd probably think we needed to change something. Check on the 2.70x day and suddenly everything looks great.

Same account, same campaigns, same targeting, same creatives. Nothing meaningful had changed. Once we zoomed out and looked at the monthly average, we had a completely different picture of what was actually happening.

And this is where constantly reacting to daily ROAS can actually start costing you money. Let's say you've got a campaign that's been working, then it has one shitty day. You panic and pause it. Now you've interrupted a campaign that's been collecting data and giving Meta information about who actually buys your product.

So you launch something else, duplicate it, change the creative, or turn it back on two days later. Now you're making Meta adjust to a bunch of changes because you were trying to fix a problem that might not have existed in the first place.

And the funniest part is you're doing all of this because you're trying to SAVE money. Sometimes the expensive decision is touching the campaign.

I'm not saying to let a campaign light your money on fire for a month because "variance." Obviously not. I'm saying one bad day isn't enough information to decide something is broken.

Before you pause anything, ask yourself one question: is this actually a trend, or did we just have a bad Tuesday?

Zoom out and look at the last two to four weeks. Look at the average and compare it to the period before it. If the average itself keeps dropping, investigate it. If yesterday sucked but the overall trend still looks healthy, leave it alone.

Sometimes the best optimization you can make is closing Ads Manager and letting the damn thing run.

reddit.com
u/SplitPleasant3618 — 14 days ago

This is where buying intent dies.

I see people make this mistake all the time.

They get a bunch of add to carts, hardly anyone starts checkout, and the first thing they do is kill the ads or launch new creatives. But the problem is the ads already did their job.

Someone saw your ad, clicked it, landed on your site, and added the product to their cart. That's a LOT of buying intent. If they're dropping off before they even reach checkout, the problem isn't your ad anymore. It isn't your checkout either. It's your cart page. Let me explain.

The first thing I'd say is don't trust Shopify's default funnel percentages without seeing what they're actually measuring.

A lot of people look at the checkout percentage in Shopify and assume it's telling them how many people who added to cart actually reached checkout. Most of the time, it's only showing checkout initiation as a percentage of total sessions, which is a a completely different number.

Instead, pull your total add to carts and your total checkout initiations separately. You can get them from Shopify reports under behavior, or from GA4 if you're tracking add_to_cart and begin_checkout as separate events. Then divide checkout initiations by add to carts. That's your add to cart to checkout rate. For this, I'm usually looking for at least 40% to 60%. If you're under 30%, you've found the leak.

Once you've confirmed that's where the problem is, I normally see one of two things. The first is there's no reason for someone to buy now.

Open your own cart page and ask yourself why anyone would feel like they need to continue today instead of coming back next week. Most stores have nothing. No stock information. no reminder that an offer ends. and nothing that creates any urgency.

If that's the case, I'd start there with a stock counter tied to your actual inventory, a countdown that's linked to a promotion ending, or a short cart reservation timer. Those are good enough to stop people putting the purchase off until later.

The second problem is that the cart page doesn't reinforce the buying decision.

Open it like you've never seen your brand before. Is there anything on that page besides a product photo, a name, and a price? For a lot of stores, there isn't. Someone gets excited enough to add the product to their cart, then lands on a page that gives them zero additional confidence to keep going.

A strong review quote, a one line reminder of the biggest benefit, or a trust badge near the order total are perfect because you're reinforcing the decision they already made a few seconds earlier.

For example, I had a brand recently with solid CTR, healthy add to cart numbers, and almost no one reaching checkout. Just like you might expect, it looked like the ads had stopped working. After calculating the actual add to cart to checkout rate instead of looking at Shopify's funnel, it was well under 30%. And what do you know, the cart page was just a thumbnail, a product name, and a price.

So from there, we added a stock indicator and one trust statement near the total. Within a few days, checkout initiation started climbing.

The moral of the story is that sometimes the leak isn't where you think it is. It's better to take 5 minutes and diagnose the funnel, rather than spend hundreds of dollars testing ads that are already working.

reddit.com
u/SplitPleasant3618 — 14 days ago