It’s a frustratingly common scenario: your initial growth looks great, but as soon as you push the budget harder, your Return on Ad Spend (ROAS) falls off a cliff.
In the latest “Ask an Analyst” session, growth consultant Sven Jürgens shared why this happens and how to diagnose the “collapse” before it drains your budget.
Here are the key takeaways for any studio looking to scale sustainably:
1. The Myth of Linear Growth: Many teams assume that if $1,000 brings in a certain return, $10,000 will do the same. It’s never the case. As you scale, you move away from your “hot,” high-intent core audience and begin reaching “colder” users who require more education and different emotional hooks to convert.
2. The “Rubik’s Cube” Approach: Think of your product as a Rubik’s Cube. It’s the same game, but you need to show different “faces” or angles to different audiences.
For colder audiences, you might need:
More educational content showing how to play.
New emotional angles (e.g., focusing on a love story vs. a detective case).
Research-backed creative that meets users where they are (at the bus station, on the couch, etc.).
3. Diagnose the Speed of the Collapse;
Instant drop (hours)? It’s likely a tech issue. Check your servers or API reporting.
Gradual decline (days/weeks)? This is audience dilution. You are burning through your core audience or hitting ad fatigue.
4. Stop “Channel Jumping” Too Early When ROAS drops, the temptation is to jump to a new network. But Sven warns that most teams don’t give channels like Meta or TikTok a fair chance. Often, the issue isn’t the channel, it’s that your creative or onboarding isn’t ready for a broader, colder audience.
The Golden Rule: Don’t just look at one metric. ROAS is a result, not a diagnosis. Map your entire funnel, from ad frequency and CPI to day-one retention and paywall conversion to find exactly where the link is breaking.