Client wants MORE ROAS… currently at 1,749% (17.49x). Am I crazy?

[IndirectSarcasm]

using gross revenue, but Only including direct ad spend as “Costs” (this is a small part of costs to clients).

so you should have a very high percentage of performance relative to if you actually measured Actual Costs Per Sale Generated.

deceiving your clients and possibly yourself by using those KPI as general client performance indicators

[autopicky]

This is pretty normal for clients who don’t get marketing. They see the cost rather than the ROI that’s staring them in the face.

If they understand finance, then just show them a financial model of basically what they’re leaving on the table by not simply increasing budget, and what they could be making by improving ROAS.

You’d also need to understand their profit margins if they’re profitable at 17 ROAS.

If they confirm margins are good, I think they’re not seeing is that by simply doubling spend, theoretically they could be making $150K. Then ask them if they’d rather make more margin off $75K, or same margin percentage but based off of $150K.

It’s really a mental block they just need to get over.

[mrfollano]

The problem is in app metrics don’t mean anything it is all modeled data too. Alot of that traffic may mid to bottom of funnel which means they may have purchased anyway or been returning customers. The real question is when you crank spend does it move top line revenue for the brand? If not or marginally it is most likely your targeting warm and that usually results in no real profit from ads. You need to be targeting cold new customers

[theppcdude]

1) Sounds like a terrible client
2) You should be optimizing for total profit margin. For example, 17X ROAS on $100 spent < 5X ROAS on $20K spent. You need to know the economics of the client very well and optimize for overall profit margin MoM.

I do this for service businesses in Google Ads. My main goal is to get them the most amount of jobs for the lowest price. So we boost ROAS and reduce CAC. We meet once a month to look at # of closed clients and sales.

[it_is_not_reality]

*Client want’s to spend $0.01 and get ROAS of 1500000000%

[Basic-Pasta]

If 17 ROAS isn’t enough then maybe they have poor margins on the products they are selling. Perhaps take the approach of A/S instead (Ad spend $/Sales in $) that can give a picture of how much the spend is cutting into margins overall. Find out what margin they can afford in ads and use A/S as the guide.

[ppcwithyrv]

Yup this is called a “grinder” at my agency. Its usually a low paying retainer client.