Your Google and Meta ROAS looks great. Ad spend is increasing. The platforms are telling you everything is working.
So why isn’t the business actually growing?
In this episode, Mark and Ian Hammersley unpack one of the most common problems they see in ecommerce businesses: brands dramatically increasing their advertising spend while recruiting the same number, or even fewer, new customers.
They explain why a high ROAS inside Google or Meta can give you a completely misleading picture of performance, particularly when existing customers, brand searches and attribution are inflating the numbers.
The conversation covers how to step back from the advertising dashboards and answer the question that actually matters:
When we put more money into advertising, did we get more money and more new customers out?
Mark and Ian also break down the ecommerce advertising S curve, where increasing spend initially drives growth before eventually reaching a point where putting more money into the account stops producing meaningful additional revenue.
And when you hit that limit, the answer is not always better ads.
Sometimes you need to improve the business itself.
They discuss:
Why a high ROAS does not automatically mean your ads are working
How Meta can attribute existing customer sales to advertising
Why one day view attribution can distort performance
How Google brand traffic can inflate ROAS
Why new customer revenue matters more than platform ROAS
How to identify when an ad account has reached its scaling limit
The ecommerce advertising S curve
Why simply increasing your budget eventually stops working
How conversion rate, AOV and lifetime customer value affect how far you can scale
Why agencies can sometimes show you the numbers you want to see instead of the numbers you need to see
If you run an ecommerce business and keep increasing your advertising budget without seeing the growth you expected, this episode could help explain exactly what is going wrong.
Subscribe for more ecommerce strategy, Google Ads, Meta Ads, Shopify and business growth discussions from the Hammersley Brothers.
#Ecommerce #ROAS #GoogleAds
P.S. Whenever you’re ready… here are 3 ways Ian and I can help you grow your ecommerce business:
1. Talk to us. Book a call with us and let’s talk about accelerating your growth – https://go.hammersleybrothers.com/apply-now/
2. Grab a copy of our book – https://gohigh.hammersleybrothers.com/get-the-book
3. Follow the Hammersley Brothers on Instagram and connect with e-commerce owners who are scaling too –
https://www.instagram.com/hammersleybrothers
