If your ROAS target is based on unrealistic margins, what should you do?

• A. Lower the ad spend to meet target
• B. Ignore margins and keep target as is
• C. Reset the ROAS target to a more realistic number based on current data
• D. Increase the ROAS target to push improvements

Answer: (C)

Targets should reflect real, current performance data. If the ROAS target is built on margins that aren’t achievable in practice, the right move is to reset that target to a more realistic number based on actual data. Recalculate margins using true costs and revenues (including product costs, fulfillment, discounts, and other marketing expenses) so the ROAS goal aligns with what the business can sustain. This keeps bidding and budget decisions grounded and helps maintain profitability.

Lowering ad spend to hit an unrealistic target doesn’t fix the underlying problem and can reduce growth. Ignoring the margins and keeping the target would likely lead to wasteful spending or unmet expectations. Increasing the target without improved margins would also be impractical. The practical approach is a data-driven revision of the target to reflect real margins.