+50% ROAS Lift to 4.73x, MER from 3.5 to 4.1, nCAC Down to $26.74, Australian Retailer, Meta Ads

The challenge

An Australian retailer wanted to scale Meta Ads without losing margin. The account was running into two compounding problems: campaigns were hitting a scaling wall every time spend pushed up, and the product feed was poorly categorised. Products weren't segmented by margin, so the algorithm was optimising toward volume on low-margin SKUs and starving the high-margin lines that actually drove profit. Every spend increase pulled more revenue in but at worse business economics each time.

What we did

• Rebuilt the product feed segmentation around margin tier, separating high-margin from low-margin SKUs into distinct campaign sets

• Restructured campaigns so the algorithm could optimise toward margin contribution, not just conversion volume

• Tightened audience targeting around cohorts that historically purchased the higher-margin lines

• Refined creative to match the new product segmentation, so high-margin SKUs had dedicated messaging

• Tied every spend decision to MER and nCAC, not just channel ROAS

The results (Q3 2025)

• Purchase ROAS: 3.14x → 4.73x (+1.59, +50.55%)

• MER (Marketing Efficiency Ratio): 3.5 → 4.1 across the business

• nCAC (new Customer Acquisition Cost): down to $26.74

• Conversion value: $69,292 → $98,231 (+$28,939, +41.76%)

• Average purchase value: $83.74

• Reach: 532,835 Meta accounts

• Result rate: 4.77%

Why it matters

ROAS lifting 50% is good. MER lifting from 3.5 to 4.1 is the real win. Channel ROAS only tells you what's happening inside Meta. MER tells you whether the entire business is earning more per advertising dollar across every channel. Lifting MER 17% while ROAS jumped 50% means Meta wasn't just looking better in isolation, it was actually contributing more profit to the business as a whole. Combined with nCAC dropping to $26.74, the brand was acquiring new customers cheaper than ever, on higher margin product mix. That's the difference between scaling spend and scaling profit.

Hitting a scaling wall on Meta Ads and watching your margin slip? Book a strategy call.