How an Australian Air Purifier Brand Cut nCAC by $98 and Reignited 20% YoY Growth
RESULTS THAT SPEAK FOR THEMSELVES
Key Stats & Results
Drop in new Customer Acquisition Cost (nCAC).
Year-over-year revenue growth.
Marketing Efficiency Ratio (MER).
FROM CHALLENGES TO SUCCESS
Unmasking the PMax ROAS Mirage
This Australian air purifier brand had built a strong reputation, trusted by hospitals, universities, and government buildings, with a high-ticket product averaging $1,000+. But after tripling revenue during COVID, growth stalled and revenue began trending downward. The account was running 100% on Performance Max, and while dashboard ROAS looked healthy, the algorithm had quietly shifted spend away from new customer acquisition and toward branded search and returning visitors.
Challenges
The PMax ROAS Mirage
The account was utilizing a “full-automation” approach, relying entirely on Performance Max. While this looked efficient on the surface, a deeper analysis revealed a critical flaw: the algorithm had shifted its focus away from cold traffic entirely.
- Vanity metrics over real growth: The account strategy prioritized “efficiency” by shifting budget away from harder-to-convert prospecting campaigns and dumping it into PMax to inflate reported ROAS.
- Brand cannibalization: PMax defaults to the path of least resistance. The algorithm was overspending on branded search terms, targeting people who were already likely to purchase regardless of the ads.
- Starved sales pipeline: By cutting off cold traffic prospecting, new customer acquisition flatlined. The business was effectively “eating itself,” causing total revenue to decline despite the ad account showing positive signals.
Solution
From Dashboard Metrics to Business Health
To correct the account’s economics, we immediately shifted focus from platform-reported metrics to holistic business growth. The goal: stop paying for customers the brand already owned and start feeding the top of the funnel again.
Restructuring for Control
We implemented strict budget caps on Performance Max to prevent brand cannibalization. This allowed us to reallocate funds back into manual campaigns where we could control targeting and ensure we weren’t paying for searches the brand already “owned.”
Reigniting Prospecting
We launched dedicated campaigns focused exclusively on cold traffic. While these campaigns naturally showed a lower “platform ROAS” initially, they were essential for feeding the top of the funnel with fresh leads.
Implementing High-Level KPIs
We moved the client’s focus away from standard ROAS and toward metrics that reflect real-world profitability: MER (Marketing Efficiency Ratio) and nCAC (New Customer Acquisition Cost).
Dynamic Platform Management
Rather than setting campaigns on autopilot, we performed daily analysis to determine where PMax was working, where it wasn’t, and how to harness AI-driven tools without surrendering strategic control.
Results
Sustainable Growth and Scalable Efficiency
By taking manual control of the strategy and moving away from total automation, we reached a new horizon of growth. The downward revenue trend was reversed, and the brand is now scaling with a healthy, sustainable pipeline of new-to-brand customers.
- nCAC dropped by $98 by eliminating wasted spend on returning customers
- 20% year-over-year revenue growth after reversing a downward trend
- Stabilized MER providing transparent visibility into total profitability
- Growing at up to 30% annually with consistent month-over-month ROAS improvements
nCAC dropped $98 — revenue decline reversed to 20% YoY growth
“A lot of agencies see spend as the solution. Chackie analyzes exactly what is going on with each campaign, tests new approaches, and gets better results from what we’re doing.”
Nicholas Krauss, Owner & Director
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