Scale against profit, not platform optimism
Terry’s Google Ads methodology is designed for ecommerce operators using Shopping and Performance Max. The starting point is not a campaign type or fashionable bid strategy—it is reliable conversion tracking, usable product data and a clear understanding of contribution economics.
Start with break-even ROAS
Break-even ROAS converts contribution margin into a usable advertising boundary. If a store retains 50% of revenue after variable costs, the theoretical break-even ROAS is 2.0 before additional overhead and risk allowances.
Formula: Break-even ROAS = 1 ÷ contribution margin expressed as a decimal. The correct input must include the variable costs that actually rise with each sale.
The operating sequence
- Validate tracking: confirm purchases, values, currencies, attribution and enhanced conversion inputs.
- Fix product data: titles, images, categories, attributes and landing pages determine what Google can understand.
- Launch with control: isolate uncertainty, protect learning periods and avoid forcing premature conclusions.
- Read blended economics: campaign ROAS matters, but so do margin, returns, fees, new-customer value and total store performance.
- Scale in measured steps: increase budget or relax targets only when conversion volume and profit evidence support the move.
Why campaigns stall
- Purchase values or primary conversion actions are wrong.
- The feed does not match how customers search or compare products.
- Budgets and targets change faster than the account can learn.
- Profitable products subsidise weak products inside an opaque structure.
- Reported ROAS is treated as profit without accounting for contribution costs.