Tsepoday MarselROMI below 1: three causes visible in a one-day audit
When advertising "doesn't pay off", the problem is rarely in the bids. Here are the three causes I find most often on day one of an e-commerce ad audit.
Cause 1. Last-click attribution
The brand campaign "brings" half the orders because it steals the last click from people who were already coming to buy. Turn it off for a week — and see the real contribution. It is usually several times smaller than reported.
Cause 2. Discounts eat the margin
ROMI is counted on revenue, but a 15% promo code at a 30% margin is half the profit of an order. Count payback on margin, not on turnover: for some campaigns the sign will flip.
Cause 3. One offer for all segments
Campaigns compete for the same audience with the same message — you are heating up the auction against yourself. Separate segments by campaign and by message.
Where to start
One day and three files: order export, cost of goods, campaign report. A spreadsheet and honesty. Only after that does it make sense to touch bids and creatives.
Key takeaways
- →Test brand campaign contribution by switching it off
- →Payback is counted on margin, discounts included
- →Segments must not compete against each other in the auction
- →An audit starts with order data, not the ad account