Google Ads

How to Fix a Low ROAS: 4 Google Ads Principles That Instantly Boost Profit

Struggling to break even on Google Ads? Learn 4 proven strategies to fix a low ROAS, cut wasted spend, and scale your eCommerce profit fast.

Google Ads Conversion Settings: The Hidden Fix That Cuts Wasted Spend and Boosts ROAS

If your Google Ads are barely breaking even, or worse, losing money.. you’re not alone.

Most eCommerce stores waste 30–40% of their ad spend without realizing it. Not because their products are bad, but because their campaigns are built on the wrong foundations.

After running Google Ads for 150+ eCommerce brands, I’ve seen the same mistakes again and again. But I’ve also seen how quickly things can turn around when you fix them.

Let’s go through the 4 principles that can turn your Google Ads from a cost center into a profit engine, the same ones we teach inside the Google Ads Fast Lane Framework.


1. The Google Ads “Fast Lane” Framework

Think of your products like a race.
Some are winning, some are warming up, and some are holding you back.

Most advertisers treat all products the same. That’s where money leaks.
Instead, split them into four lanes:

Product Type What It Means What To Do
Winning Products High ROAS, consistent sales Scale budgets aggressively
Racing Products Making sales but not enough data yet Keep testing, 50+ clicks minimum
Warming Up Few clicks, no data yet Give time — increase spend slowly
Losing Products Spend > Sales Pause immediately — test new creatives later

When you manage campaigns this way, every euro you spend has a job.
No more guessing, no more blind scaling, just clear focus.

💡 Pro tip: Retest “losers” later with new creatives or bundles. Sometimes the product isn’t bad, just the angle.


2. Fix Your Conversion Tracking (Google’s Hidden Profit Leak)

You can’t scale what you can’t track.

In 8 out of 10 accounts we audit, Google is tracking the wrong goal, like phone calls or form fills instead of purchases. That means your ads are being optimized for the wrong outcome.

Here’s how to fix it:

  1. Go to Goals → Summary in your Google Ads account.

  2. Set “Purchase” as the only Primary Conversion.

  3. Change everything else (calls, contact forms) to Secondary.

  4. Check that your purchase value is tracked in real currency (€ / $).

Now Google knows exactly what matters.. sales.

✅ One goal.
✅ One signal.
✅ One profitable direction.

When we first implemented this fix for a fashion brand, their ROAS jumped from 1.8 to 3.1 in just 14 days. Same budget, same products, better tracking.

👉 See how we set up conversion tracking for eCommerce brands 

 

3. Exclude Irrelevant Placements (Stop Paying for Useless Clicks)

Google is great at spending your money — especially in the wrong places.

By default, your Shopping and Performance Max campaigns show up on mobile apps, games, and news sites that never convert.

Every click there costs money but brings no results.

Here’s how to stop that leak:

  1. Go to Tools → Content Suitability → Excluded Placements

  2. Expand App Categories

  3. Select All 140 categories manually (yes, all)

It takes 5 minutes — but it can save you hundreds every month.

Once you exclude irrelevant placements, Google spends your money where buyers actually are — on high-intent shopping searches.

💰 Every euro saved here = a euro reinvested into profitable clicks.

👉 Learn how to stop wasting ad spend within your campaign placements

 

Struggling to scale profitably? Learn how to do it yourself – Copy the setup tested on 100+ stores.

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4. Play With Pricing (Your Hidden Profit Lever)

Most store owners lower prices to get more sales.
But lowering price usually lowers profit too.

Sometimes, raising your price (just €5–10) can increase both ROAS and AOV (Average Order Value).

Here’s why:

  • Higher prices create higher perceived value.

  • You offset ad costs with minimal conversion loss.

  • Bundles increase both AOV and brand credibility.

Example:
A client selling travel accessories was stuck at break-even.
We increased their average product price by €6 and added a “Buy 2 Get 10% Off” bundle.
Their ROAS jumped from 2.0 to 3.6 within one week — without changing a single ad.

If your conversion rate is above 2.5%, test higher pricing or volume bundles.
Sometimes, profit is one small price tweak away.

 

The Takeaway

Running profitable Google Ads isn’t luck — it’s structure.

When you:

  1. Use the Fast Lane Framework,

  2. Fix your Conversion Tracking,

  3. Exclude Irrelevant Placements, and

  4. Play With Pricing,

You’ll see your ad spend finally work for you, not against you.

Before applying these fixes, many of our clients struggled with low ROAS and wasted budgets.
After applying them, they scaled past €500,000/month in Google Ads revenue — profitably.

You can do the same.

 

Want Help Applying This?

We’ve used this process to help over 150+ eCommerce stores scale profitably.

👉 Get Your Google Ads Audit — let’s optimize your campaigns using the same Fast Lane Framework that drives consistent ROAS across every client we work with.

Or, check out our Google Ads Playbook to learn step-by-step how to implement it yourself.

 

FAQ: Fixing Low ROAS in Google Ads

Q1: Why is my ROAS so low?
Usually, it’s because your account is tracking the wrong goals, overspending on bad placements, or advertising too many unproven products at once.

Q2: What’s a good ROAS for eCommerce?
Most stores aim for 2.5x–3x ROAS as the break-even point. Anything higher is profit, depending on your product margins.

Q3: How long does it take to improve ROAS?
With correct tracking and ad segmentation, you can see improvement in 7–14 days. Results compound as Google learns what to prioritize.

Q4: Should I use manual or automated bidding?
Start with Maximize Conversions once tracking is fixed. Switch to Target ROAS once you have at least 30–50 conversions per month.

 

Struggling to scale profitably? Learn how to do it yourself – Copy the setup tested on 100+ stores.

Done for you Ads Management

Ready to scale your revenue & profits using Google Ads?

If you want to scale your Google Ads to the next level while maintaining a solid profit margin and growing in a controlled way, we can help you break through your revenue plateau with our Google Ads scaling system, proven to work for more than 225+ e-commerce stores.

Curious what that could mean for you? Book a call using the button below.
Join My Free E-Commerce Knowledge Center to Boost Your Online Store’s Sales & Profits

✔ Free Knowledge for Guaranteed More Sales & Profit

✔ Incl. Checklists, E-books, Templates, Tutorials, 75+ Video’s, Special Discounts E-Commerce Software and many more.

✔ 5+ Years E-Com Experience

✔ 100% Free & Direct Access

Join 150+ eCommerce brands who grew faster using our Proven Google Ads Management Service – backed by €16M+ in managed ad spend and real data.

Join 150+ eCommerce brands who grew faster using our Proven Google Ads Management Service – backed by €16M+ in managed ad spend and real data.