Digital MarketingIntermediate 2 to 3 hours

Diagnose a Declining ROAS

A Meta Ads campaign's ROAS dropped from 4.2× to 1.8×. Find the root cause.

The Scenario

A DTC skincare brand runs Meta Ads. Over 6 weeks, ROAS dropped from 4.2× to 1.8×. The media buyer says "the algorithm is broken." The CMO wants a real diagnosis.

The Brief

Conduct a systematic diagnosis. Decompose ROAS into its component parts (CPM, CTR, CPC, CVR, AOV), identify which lever(s) moved, and propose hypotheses for each.

Deliverables

  • A ROAS decomposition: ROAS = Revenue / Spend = (Clicks × CVR × AOV) / (Impressions × CPM / 1000)
  • A week-by-week trend table (invented but plausible) showing which metric deteriorated
  • At least 4 hypotheses for the decline, with the data you would check to confirm each
  • A recommended action plan to recover ROAS within 2 weeks

Submission Guidance

A declining ROAS is a symptom, not a diagnosis. If CPM went up, that is a demand-side issue (competition, audience fatigue). If CVR went down, the problem is on the landing page. Show this thinking.

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