Challenging the Definition: Examining Wasted Spend in Advertising Audits

➡️Recently, we encountered an audit conducted by an agency for one of our existing clients. The major focus of the entire audit was on wasted spending. The agency highlighted that the wasted spend for the last 30 days amounted to $3000 and projected it for the year at $36000 (3x12). However, this logic is completely flawed.

➡️According to their definition of wasted spending, any keyword that does not generate any sales and has incurred spending is considered wasted spending. They have even included keywords that received only 1 click and spent $0.60 in the wasted spend category.

➡️But logically, this is unacceptable. There are multiple definitions for wasted spend, and it varies based on the account, category, pricing, etc.

➡️You can consider keywords that have a minimum of 10-15 clicks and have spent close to $20 - $25 (depending on the product price) as wasted spend.

➡️We have clients who want us to spend on a few targeted, relevant keywords without worrying about performance, as they aim to secure particular placements for those keywords.

➡️All I am saying is that there are multiple factors involved, and one cannot simply label everything as wasted spend without providing a logical explanation.
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