Challenging “Wasted Spend” in Ad Audits

✅Recently, we reviewed an ad audit from another agency for one of our clients. The entire focus? Wasted Spend. They claimed the client’s "wasted spend" was $3,000 in the last 30 days, projecting an eye-watering $36,000 for the year (3k x 12). But this logic doesn’t hold up.

✅Here’s their definition of wasted spend: any keyword that didn't produce sales but incurred costs. Even keywords with just 1 click and $0.60 in spend were included as “wasted.”

✅But let’s be real: calling every non-converting keyword wasted is oversimplified. The reality? "Wasted spend" depends on context—account, category, pricing, and strategy matter.

✅A more realistic threshold for wasted spend could be keywords with 10-15 clicks and around $20-$25 spent(adjusted for product price). This is a more nuanced approach.

✅We work with clients who strategically bid on certain keywords just to secure a position, regardless of short-term performance.

✅Bottom line: You can’t slap a “wasted spend” label on everything without context. In advertising, one size does not fit all.