When should I kill a Facebook ad?
Kill it if your ROAS is less than half of your breakeven ROAS, or if your ROAS is zero after at least 100 dollars of spend over 3 or more days. Hold the spend if you are right at breakeven. Scale only when ROAS is 50 percent or more above breakeven.
What is breakeven ROAS for a Shopify ad?
Breakeven ROAS is 1 divided by your gross margin. At a 50 percent margin you need a ROAS of 2.0x to break even. At a 33 percent margin you need 3.0x. Below your breakeven, every order is losing money.
How long should I let a Facebook ad run before judging it?
At least 3 days, with at least 100 dollars of spend, ideally 1,000 or more impressions. Before that, day-to-day variance is too high for the ROAS reading to mean anything.
Is a 2x ROAS good on Facebook ads?
It depends on your gross margin. At 50 percent margin, 2x is exactly breakeven. At 33 percent margin, 2x is 33 percent below breakeven and you should kill the ad. Always compare ROAS to your breakeven, not to a generic threshold.
Why is Meta Ads Manager not enough to decide whether to kill an ad?
Meta shows your ROAS but not your breakeven ROAS, your dollar burn rate per day, or what you will lose over the next 30 days if nothing changes. All three require gross margin, which Meta does not know. Without those reads, you are guessing whether your ROAS is enough.
How do I know if I should scale a Facebook ad?
Scale only if ROAS is at least 50 percent above your breakeven ROAS, after at least 3 days and 100 dollars of spend. Increase budget by 20 to 30 percent and re-check in 3 to 4 days. Scaling at breakeven or just above means you fund a marginal ad with no headroom.
What does it mean if my Facebook ad is bleeding money?
Bleeding hard means your ROAS is less than half of your breakeven ROAS. At a 50 percent margin, that is any ROAS under 1.0x. Every day this runs costs you a measurable amount. Kill it.