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There is a very good reason to always check revenue AND ROI
Posted by on March 11, 2026 at 7:39 pm…when running a test.
If you are deep into diminishing return territory, regardless you move the budget up or down, you will not see any difference. This is where your marginal ROI is or close to 0.
Therefore before concluding that the test has failed look at the lift in ROI.
Because if you reduce budget and revenue has not moved, in theory your ROI should increase…
Have you ever cut budget, seen revenue hold, and realised you were already in the flat zone? What did you do with that information?"
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1 Reply
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Margins and LTV are the key here
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This is marginal ROI optimization 101… when you hit the flat zone your next dollar returns nothing so cutting budget maintains revenue while improving efficiency. For my ecom clients I track this monthly by comparing incremental spend against incremental revenue… when adding $50k generates less than target ROAS we’re past saturation and reallocate to undersaturated channels where marginal returns still exceed blended average.
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Happens all the time with how brands, freelancers and agencies spend on Meta ads these days. Either invest that money somewhere else in the business or they get someone who knows how to run & optimize Meta ads for real revenue growth.
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Happened with us. Spends were close to $15k per day. As soon as we dropped to $5k per day CPI dropped by 75%.
Spends dropped by 66%. CPI improved by 75%
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