Something to bear in mind, if you’re using an automated bidding model such as maximise conversions, you’d expect your IS lost to rank to rise sharply.
Contrary to what has been said above, these bidding models actually focus down onto only the searches which the Google AI thinks are likely to lead to conversions – rather than targeting every auction, you’ll only bid in the ‘best’ prospects, essentially bidding zero for any auction that doesn’t meet the standard. It could be that that campaign has a lot of trash searches being made and only 30% are worth bidding on.
The problem is that Google doesn’t have a column for IS lost to ‘not bid on by the AI’
There are other factors in play, such as any CPA targets you might have in place… adjust these and you’ll likely claw back some of that IS. Obviously, that May not be viable within your ROAS (and possibly may provide zero improvement).
I’m not saying that I have a definitive answer as to whether your agency are doing a good job or not (I have no idea), and they should give you access to any reports you want, but the mechanics of automated bidding models are complex and specific to each individual account and campaign. For people here to tell you that this situation doesn’t seem right makes no sense to me.