Your question is Explain ROAS for Meta Ads. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
A mid-market ecommerce advertiser spends heavily on Meta Ads across Facebook Feed, Instagram Reels, and Stories. After a recent campaign review in Meta Ads Manager, the client says ROAS fell from 3.8x last month to 2.9x this month, even though total purchases increased.
The client spent $120,000 last month and attributed $456,000 in purchase value, for a 3.8x ROAS. This month, spend increased to $180,000 and attributed purchase value increased to $522,000, producing 2.9x ROAS. In the same period, purchases rose from 3,800 to 4,350, average order value fell from $120 to $100, and CPM increased from $14 to $18. The Account Executive wants you to explain ROAS clearly, show how it should be interpreted, and identify what additional cuts of the data would help explain the decline.