Why High-Spend Ads Can Have Lower ROAS

Host Brad flies solo to walk through exactly how his team structures Meta creative testing across eight figures a year in ad spend. The episode is a tactical follow-up to a previous episode with Phil, prompted by a viral Twitter thread Brad posted on the same topic.

The core philosophy: stop trying to outthink Meta's algorithm on budget allocation. Instead, run a single CBO campaign per product or offer, treat ad sets as simple folders (not audience segments), and let Meta decide where the money goes. Brad backs this up with real ad account screenshots, shows why a higher-spending campaign with a lower ROAS can actually be healthier than it looks, and closes out with answers to the most common follow-up questions he received from the community.

Key Takeaways

• Why Meta's algorithm is smarter than you at deciding which of your ads deserves more budget and what that means for how you should structure your campaigns.
• The single reason you need to stop creating more ad sets and start stacking all your ads in one.
• Your top-spending ad set has a lower ROAS than the one barely getting any spend, does that mean you're burning money, or is Meta showing you something you're missing?
• The truth behind what actually happens when you pull it into an ABO to force-test it.
• How do you build a creative testing system that generates consistent weekly output without needing a huge production budget or team.
• What "spend is a signal" actually means for your creatives and how you should decide when to turn an ad off (You might actually be turning them off too early)
• Is splitting your account into a testing campaign and a scaling campaign helping you, or just adding complexity that slows down Meta's learning?
• How new visitor percentage and frequency metrics should change the way you interpret your campaign's ROAS.
• The actual risk of running ads to two completely different customer personas inside the same ad set on broad targeting.
• How to tell when it's time to question your creative quality versus just staying patient with your launch cadence.

This episode of the Scalability School podcast is sponsored by NorthBeam and they just launched Northbeam Incrementality. Northbeam Incrementality gives you easy, automated, self-service incrementality tests, while protecting you from the major mistakes so many people make while running incrementality tests. Your MTA handles the daily tactics, your MMM guides the long-term planning, and Incrementality provides the causal truth. It's a closed loop that allows you to scale what works and cut what doesn't. Right now when you head over to www.northbeam.io/incrementality , they're offering Scalability School listeners 50% off unlimited tests for a year when you join. Just tell them we sent you!

To connect with Andrew Foxwell send an email Andrew@foxwelldigital.com

To connect with Brad Ploch send him a DM at https://x.com/brad_ploch

To connect with Zach Stuck send him a DM at https://x.com/zachmstuck

Learn More about the Foxwell Founders Community at https://foxwellfounders.com/

Learn More about the The Hive Haus Creators Community at http://HiveHausUGC.com