Study: Budget-limited Google Ads campaigns lost 20% ROAS surplus when competitors raised spending
By Paid Media NewsReported by Paid Media News
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Research
TLDR
A UK homeware retailer's budget-capped Google Ads campaigns lost a 20% ROAS advantage over three weeks as competitors increased spend and CPCs rose sharply.
According to SMEC, a UK homeware retailer running budget-limited Google Ads campaigns saw their 20% return-on-ad-spend advantage disappear over three weeks; during that period, cost-per-click rose from approximately 17p to 27p, while unaffected competitors raised their target ROAS simultaneously. The finding raises questions about whether budget constraints trigger competitive positioning shifts during peak shopping seasons.
Topics:Paid Search & Advertising
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