Hi everyone, Regina here with Starter PPC. Oh my gosh, the ROAS shrink is real, I have found all the data for you. If you have been following us for the past year, maybe two years, Or if you've worked with us, you know that we talk and talk about how Google Ads is losing its ability to track users very well. And that's why we've started using a different metric from ROAS, return on ad spend. Instead, we now track media efficiency ratio. Both of these metrics usually just applies to e commerce companies. If you are a lead gen company, this concept still applies to you because Google is losing its ability to track your users as well. But for you, we would be using total business cost per new customer. Whereas in the world of e commerce, I'm looking right now at ROAS and ROAS versus Merck. A lot of our clients, they come to us still wanting, a 300 percent ROAS or 400 percent ROAS. And they say to us a year or two ago I was getting three or 400 just fine. How come you guys can only get me 200? This is what's happening. Google is being. sued for privacy law restrictions. Sued for data gathering. They're getting put on a leash. This is happening progressively over time. In addition, they now have things are coming at them from all angles, right? They also have Apple, which is now stripping URLs whenever someone clicks on an ad. For privacy reasons, because Apple's launching their own ad platform and they want Google's ads to look less profitable. What's happening is a 300 percent ROAS back in the day is the equivalent of a 200 percent ROAS today. And I'm just using round numbers here, these are not. Real numbers, right? It's an unknown. We don't know how much shrinkage there really is. Specific to an industry. Some industries get restricted by privacy laws more than under other industries. An example of this is if you are in the financial planning industry. Supplement industry, medical industry, there's no such thing as remarketing for you. Whereas back in the day, it would have been okay, right? So that's one major example of a huge restriction on the ability to track users. I have pulled up dozens of accounts data across a wide variety of industries, this is data from our clients. I have tabs open. Each tab is a separate manager account. So we have 5 different manager accounts with, 100 clients in each. Maybe not a full 100, but we had to split them up because you can only put, a certain amount of accounts within each manager account. So we have 5. And, what you're seeing here is data across. 21 accounts in our first manager account, and I'm only showing 21 accounts because what I've done is I've put some filters here that says that the ROAS has to be at least 80 and I did that 80%. And I did that just to take all of the lead gen. accounts or the accounts that aren't tracking conversion value out of the equation for our graph. Here is from January 1st, 2020 through now, the end of August 2023. Almost four years later, you see a downward trend and this is across 21 accounts, right? So this is the average ROAS per month. Almost four years, across 21 accounts on average. Each of our manager accounts, this one, I believe has 19 again, downward trend manager account. Number three, manager account. Number four, manager account. Number five, downward trend I wish it wasn't the case, you guys, but it's true. Unfortunately, ROAS has just become an unreliable metric. And here is the proof, It's not just you. It's everyone. It's not just us saying this, it's fact. Hi there, quick interruption. Do you know the main thing that prevents small business owners from getting their Google ads account into a position to grow and scale budget? A lot of businesses, especially those that are just starting out, have limited budgets. And so because of this, they're turned away by most ad agencies because most ad agencies have minimum budget thresholds that they're willing to work with. So what happens is the business owners end up learning Google ads themselves. And the problem with that is that most of the advice online is geared towards larger accounts. And the advice doesn't have any of those strategies or tricks that can kickstart the algorithm into giving a small account a leg up over larger competitors. So it often just doesn't work. And the business just ends up losing money month over month. If this sounds familiar, starter PPC can help. We offer Google ads management services that are designed for accounts that have between 1000 and 5, 000 budgets. And Because all of our clients are just starting out, we've come up with ways to keep our management fees significantly lower than most agencies, because we know that every dollar saved on management fees just goes towards the ad budget, which is going to help the algorithm gather speed and power. So if you're serious about growing your business and you'd like a team of Google ads experts to help you without breaking the bank, check us out at starterpbc. com. Okay. Back to the video.. I wish I had a way to tell you guys. Here is the exact return on your ad spend that you got from Google ads. I don't have a way to do that anymore. All I can do is tell you, this is the return on ad spend we can see in the dashboard. And let's look at the return on your total marketing spend, right? Which is MER, Media Efficiency Ratio, for your business. And these two numbers are going to be different. For example, if it's 200 percent ROAS inside the ad account. For example, your media efficiency ratio, the return on your marketing spend for your business will usually will always be higher. For example, 300%. And we have to assume that the 200 percent is then good enough, right? Good enough to push for growth because the business is showing profit. And the only way that you can really try to gauge whether Google ads is impacting that total 300 percent NER media efficiency ratio. Would be to. Lower your Google ad spend or raise your Google ad spend and see how is that media efficiency ratio impacted for your business as a whole. Unfortunately, this isn't a clean test. Because so many other factors can affect it, right? If the weather shifts or if the economy shifts during that experiment, it can have a huge impact on business the everything. And so you don't know for sure whether it was the budget that affected it or not. This is why when you work with starter PPC or with solutions eight, we usually recommend adding 20 percent budget month over month in the beginning, at least, to try to gauge whether that media efficiency ratio is going down, staying the same, can it withstand this growth? Is the business going to be profitable? Is there room for scale? I hope that these giant graphs that I've pulled up on my screen here have managed to convince you guys that the ROAS shrink is real. Thank you for watching. If you have any questions, let us know. You can check us out at starter ppc. com. You can also check out our sister agency solutions soul eight, com and we will talk to you soon. Thanks.