Scale on delivered revenue, not reported ROAS

Ecommerce PPC management costs vary according to advertising spend, number of products, campaign complexity, platforms used, creative requirements and optimisation needs. Management fees should be considered separately from the actual advertising budget.

The appropriate advertising budget depends on product margins, average order value, conversion rate, customer acquisition cost and available demand. Instead of selecting a budget based only on industry averages, ecommerce brands should work backwards from their unit economics and profitability targets.

There is no universal good ROAS for ecommerce. A profitable ROAS depends on factors such as gross margin, average order value, returns, fulfilment costs, customer acquisition costs and repeat purchases. A higher ROAS is not automatically better if it limits profitable growth.

Google Shopping is effective at capturing existing product-search demand, while Meta Ads can create demand through audience targeting and creative discovery. Many ecommerce businesses can benefit from using both platforms as part of a broader paid acquisition strategy.

Both campaign types can have a role in ecommerce advertising. The appropriate choice depends on the account structure, available conversion data, product catalogue, campaign objectives and desired level of control.

Revenue and ROAS do not necessarily equal profitability. An ecommerce campaign can generate sales while remaining unprofitable because of product costs, shipping, returns, discounts, payment fees, agency costs and other expenses. Profitability should therefore be evaluated alongside revenue and ROAS.

The product feed is an important part of Google Shopping because it provides Google with information about the products being advertised. Accurate and well-structured product information helps ensure that products can be appropriately matched with relevant searches.

Ecommerce campaigns should be scaled based on conversion data, profitability and available demand rather than increasing budgets aggressively. Scaling should consider creative performance, audience saturation, customer acquisition costs, margins and the campaign's ability to maintain profitable economics.

The correct optimisation goal depends on the business model and economics. Revenue and ROAS are useful performance indicators, but profit and contribution margin provide a more complete view of whether growth is commercially sustainable.

Meta Advantage+ Shopping campaigns can use Meta's automated systems to help optimise ecommerce advertising. Whether they are appropriate depends on the brand, available conversion data, product catalogue, campaign objective and overall advertising strategy.