E-commerce · Value Creation
Advertising waste identification
Published · Reviewed by The Diligence Standard Team · Updated
Spend should be classified by incremental contribution, not platform-reported return alone.
Records to reconcile
- Campaign spend and orders
- Branded and non-brand mix
- Contribution by cohort
Warning signal
Cuts are based on attributed ROAS without incrementality or retention context.
Transaction impact
Removing unproductive spend can raise profit but may reduce future demand.
Response
Test controlled reductions and distinguish immediate savings from revenue risk.