Paid Acquisition Efficiency & ROAS Optimization

Arcova Labs · Q2 2024 · $1.84M Budget · Target LTV:CAC ≥ 4.0

Meta Attribution Inflation Alert Audience Overlap 41%
Verified vs Platform ROAS Gap
-44%
Meta inflation
Blended CAC
$2,187
-6.5% vs Q1
LTV:CAC Ratio
3.82
Below 4.0 target
Audience Overlap Rate
41%
+12pp vs W3
Creative Fatigue Index
81
Critical: refresh
Budget Realloc Opportunity
$406K
Meta→Google

Verified vs Platform-Reported ROAS (12 Weeks)

Blended CAC & LTV:CAC by Channel

Channel Performance: True Incremental ROAS vs Platform Claims

Channel Spend Platform ROAS Verified ROAS Gap Incremental ROAS CAC LTV:CAC Status
Meta Ads $687K 4.1x 2.3x -44% 1.8x $2,890 2.9 Critical
Google Search $524K 5.2x 4.9x -6% 4.6x $1,620 5.2 Strong
LinkedIn $412K 3.4x 2.8x -18% 2.4x $2,340 3.6 Watch
Google Display $137K 2.1x 1.6x -24% 1.3x $3,210 2.1 Review
Reddit Ads $80K 1.8x 1.5x -17% 1.2x $3,580 1.9 Test
Attribution Inflation Crisis: Meta audience expansion test (W5) triggered 44% ROAS gap. Platform claims 4.1x; verified post-conversion revenue shows 2.3x. LinkedIn retargeting overlap at 41% is cannibalizing Google attribution. Recommend reallocating $406K from Meta to Google branded+competitor keywords.

Frequency-to-CVR Degradation (Meta)

Creative Fatigue Index by Ad Set (Top 8)

Meta - Cybersecurity Compliance Hero 81
Meta - Enterprise Security Pain Points 76
LinkedIn - B2B Compliance Case Study 68
Google Display - Retargeting Set A 62
Meta - Feature Highlights Carousel 59
LinkedIn - Thought Leadership 43
Google Search - Branded Keywords 28
Google Search - Competitor Keywords 21

Recommended Actions

1
Immediate Meta Budget Cut: $406K Reallocation
Platform-reported ROAS of 4.1x masks verified ROAS of 2.3x. Audience expansion test created 44% attribution inflation. Cut Meta spend by 59% and reallocate to Google Search branded + competitor keywords (verified ROAS 4.9x, -6% gap).
2
Emergency Creative Refresh (W10)
Creative Fatigue Index at 81 for top Meta ad set. CVR has dropped 38% since W6 despite stable CPM. Fast-track design queue to ship 3 new hero creatives by end of W10 to arrest declining marginal returns.
3
Reduce LinkedIn Retargeting to Contain Overlap
Audience overlap spiked from 29% to 41% in 3 weeks after LinkedIn retargeting expansion (W6). This is cannibalizing Google Search last-touch attribution. Narrow LinkedIn retargeting window from 90d to 30d to reduce cross-channel interference.
4
Frequency Cap Enforcement on Meta
CVR degrades 62% when frequency exceeds 4.2 impressions/user. Enforce 4-impression weekly cap on all Meta campaigns to prevent wasteful spend against diminishing returns.