An in-depth analysis of $1.5 billion in Meta and Google ad spend reveals critical differences in platform bid control effectiveness. The study highlights that while ROAS-based bidding consistently delivers its targets, cost-per-result goals often fall short. Ecommerce operators should prioritize ROAS-based strategies to optimize ad investment and protect profit margins.
Key takeaways
Shift to ROAS-based bidding for Meta and Google ads, as data shows it offers algorithms more flexibility to find high-value buyers and consistently hits targets.
Be cautious with cost-per-result bid controls on Meta, as they achieved their target less than 50% of the time in the analyzed data.
Understand that Google’s tROAS is aggressive (1.3x target) and tCPA is efficient (0.8x target), indicating different algorithmic priorities than Meta.
Recognize that brands willing to invest more in customer acquisition tend to win ad auctions, making it crucial to understand your CAC and LTV.
Consider TikTok's GMV Max budget scaling as a potential solution for balancing liquidity and predictability in ad spend.
We connected Claude to our Statlas database and analyzed $1.5 billion in Meta spend across 320 accounts and $100 million in Google spend across 134 stores. The question: do platform bid controls actually deliver what they promise?Tony Chopp, CTC's VP of Media Investment, walks through what we found — and what it means for how you build your paid media foundation.Min ROAS hits its target. Cost per result does not.On Meta, cost per result goal achieved its target less than half the time.On Google, tROAS ran above target at 1.3x. tCPA ran below at 0.8x.ROAS-based bidding gives the algorithm more flexibility to find high-value buyers.TikTok's GMV Max budget scaling solves the liquidity vs. predictability tension.The brands willing to spend the most to acquire a customer win the auction.The takeaway: build your paid media foundation on ROAS-based bidding. Not because it's a rule — because the data says it gives you the best chance to thread the needle between maximum investment and margin protection.Show Notes:Go to https://bit.ly/4cbihFx to Claim $25,000 in Lutiq platform creditsExplore the Prophit Engine: https://commonthreadco.com/pages/prophit-engineThe Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have
What does this episode say about paid acquisition?
Shift to ROAS-based bidding for Meta and Google ads, as data shows it offers algorithms more flexibility to find high-value buyers and consistently hits targets.
What does this episode say about analytics & attribution?
Be cautious with cost-per-result bid controls on Meta, as they achieved their target less than 50% of the time in the analyzed data.
What does this episode say about dtc strategy?
Understand that Google’s tROAS is aggressive (1.3x target) and tCPA is efficient (0.8x target), indicating different algorithmic priorities than Meta.
What does this episode say about paid acquisition?
Recognize that brands willing to invest more in customer acquisition tend to win ad auctions, making it crucial to understand your CAC and LTV.
What does this episode say about paid acquisition?
Consider TikTok's GMV Max budget scaling as a potential solution for balancing liquidity and predictability in ad spend.
