# Wasted-Spend & ROAS Model — Sample Audit Deliverable

**Ads Health Score: 54/100**
**Grade: D**

_Sample deliverable — modeled from a representative advertiser's exported spend data
(figures illustrative). This section runs from a CSV/Sheets export; the paid audit goes on to install the fixes in the live account. Prepared by Ads by Rex._

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## Account at a Glance

This is the quantified backbone of a full audit: before touching a single setting, we model
where the money actually goes so every recommendation ties to a dollar figure.

| Metric | Current | Notes |
|---|---|---|
| Monthly ad spend | $12,400 | across Google Search + Meta |
| Conversions / mo | 86 | platform-reported |
| Cost per acquisition (CPA) | $144 | spend ÷ conversions |
| Average order value (AOV) | $310 | from client export |
| Reported ROAS | 2.15x | platform-reported (suspect — see tracking) |
| Break-even ROAS | 1.00x at 0% margin / 2.50x at 40% margin | model below |

## Where the Budget Actually Goes

| Bucket | Monthly spend | Share | Status |
|---|---|---|---|
| Converting search terms / audiences | $7,050 | 57% | Pass |
| Broad-match & irrelevant search terms | $2,480 | 20% | Fail |
| Overlapping / redundant audiences | $1,610 | 13% | Warning |
| Placements with 0 conversions (30d) | $1,260 | 10% | Fail |

**Modeled wasted spend: ~$3,740/mo (30%)** — the broad-match leakage plus zero-conversion
placements. Reallocating even half of that to the converting buckets, at the current
blended CPA, models to **~13 extra conversions/mo** with no budget increase.

## Break-Even & Margin Reality

- At a 40% product margin, break-even ROAS is **2.50x** — the account's *reported* 2.15x is
  already underwater, and that's before correcting the tracking (next section).
- Target ROAS to hit a healthy 3:1 contribution: **4.17x** at 40% margin.
- LTV:CAC — with a modeled 1.8x repeat rate, true CAC payback lands inside 2 orders;
  worth shifting some budget from "new conversion" to retention/retargeting.

## Why the Reported Numbers Are Suspect

- Platform-reported ROAS (2.15x) and the client's actual deposits don't reconcile — a
  classic double-counting signature (the same purchase counted by both GA4 and the pixel).
- No server-side (CAPI/sGTM) backup means post-iOS conversions are under-reported in the
  other direction. **The real ROAS is unknown until tracking is fixed** — which is why a
  tracking audit precedes any "scale the winners" advice.

## Quick Wins

1. Add the broad-match leakage terms as negatives — recover ~$2,480/mo, fastest single fix.
2. Pause the 4 zero-conversion placements (30-day lookback) — recover ~$1,260/mo.
3. De-dupe the overlapping audiences into one structure — stop bidding against yourself.
4. Stand up conversion-tracking validation before any budget increase — you can't scale a number you can't trust.

## What This Sample Shows

A real audit pairs this model with the live account review (search terms, structure,
creative, tracking) and delivers the findings ranked by exactly this dollar impact —
top fixes first. The free public-data teardown is the wedge; this is the math underneath.