PMax: Knife Rack — Campaign Analysis

Summary

A PMax campaign targeting magnetic knife racks that was correctly paused on Feb 3 after three weeks of sub-1.2x ROAS. The campaign exhibited classic PMax behaviour: when it exhausted high-intent Shopping inventory, it shifted spend to low-quality Display/YouTube placements with massive impression spikes and zero conversions. The fundamental issue is that knife racks (~£40-50 AOV) may not support paid acquisition at any reasonable cost structure.

Campaign Configuration

SettingValue
Campaign ID76
NamePMax: Magnetic Knife Rack Only Shopping (SC)
TypePerformance Max
Bidding strategyMAXIMIZE_CONVERSIONS
Daily budget£20
StatusPAUSED (last data Feb 3)

Performance Data

Weekly Progression (51 days: Dec 12 – Feb 3)

WeekImprClicksCostCPCConvRevenueROAS
Dec 8–1448K534£191£0.3612.2£6293.30x
Dec 15–21220K1,720£342£0.2017.0£8072.36x
Dec 22–2812K170£207£1.226.0£3451.67x
Dec 29–Jan 425K454£334£0.7419.3£1,1813.54x
Jan 5–1121K407£337£0.8314.5£8232.44x
Jan 12–1840K718£357£0.505.2£2800.79x
Jan 19–2552K782£342£0.447.0£3110.91x
Jan 26–Feb 1162K1,041£142£0.144.2£1621.14x
Feb 2–32K32£14£0.431.0£402.88x

Totals: £2,265 cost | 5,858 clicks | £0.39 CPC | 86.4 conversions | £4,578 revenue | 2.02x ROAS

Operational Note

Jan 29–30 was affected by the GMC suspension (domain switch to hairpin.com). However, performance was already deteriorating for two weeks before this event. See ../../reference/operational-log.md.

Channel Breakdown (confirmed via segments.ad_network_type)

As of Feb 10, the system syncs PMax data segmented by ad network. This confirms what was previously inferred from CPC patterns.

Channel% SpendImpressionsClicksCostCPCConvRevenueROAS
SEARCH84.8%115K1,794£1,921£1.0786.4£4,5782.38x
CONTENT (Display)12.2%467K4,034£276£0.070£00.00x
YOUTUBE2.8%1K25£63£2.540£00.00x
SEARCH_PARTNERS0.2%2215£5£1.020£00.00x
TOTAL100%583K5,858£2,265£0.3986.4£4,5782.02x

Every single conversion came from Search. Display, YouTube, and Search Partners produced zero conversions combined while consuming 15.2% of budget (£344).

What this means

  • Search-only ROAS would have been 2.38x instead of the blended 2.02x. Display waste dragged total performance down by 15%.
  • Display bought 467K impressions at £0.07 CPC — remnant inventory on junk placements. Google’s PMax algorithm was opportunistically buying cheap Display clicks to fill the budget when it couldn’t find Search users likely to convert.
  • YouTube was expensive and useless — £2.54 CPC (higher than Search) with zero conversions from 25 clicks. Small absolute spend but 0% return.

The junk placement pattern — now confirmed

Previously inferred from CPC patterns, now verified by channel data:

DateImpressionsClicksCPCConversionsWhat happened
Dec 18153,640809£0.060Junk Display placement burst
Jan 1723,025334£0.150Same pattern, smaller
Jan 1913,360282£0.172Same pattern
Jan 2212,198136£0.450Same pattern
Jan 2732,797264£0.071Large burst
Jan 28108,600558£0.040Largest burst — this caused the Jan 28 anomaly noted in the data audit (129K total account impressions that day)

MAXIMIZE_CONVERSIONS bidding has no CPC floor, so Google fills the budget with the cheapest available impressions when it can’t find Search users likely to convert.

Device Breakdown (30 days, Jan 11 – Feb 9)

DeviceSpend% SpendClicksCPCConvRevenueROAS
Mobile£62969.6%1,681£0.3711.2£5030.80x
Desktop£24427.0%185£1.327.2£3301.35x
Tablet£313.4%769£0.040.0£00.00x

Key findings:

  • Tablet is the smoking gun: 769 clicks at £0.04 CPC is unmistakably Display remnant inventory — normal Shopping/Search tablet clicks cost £0.50+. This is the device-level confirmation of the Display junk placement pattern identified in the channel breakdown. Google targeted tablets for its cheapest Display fill.
  • Mobile dominates spend (70%) at a low £0.37 CPC — also heavily influenced by Display placements. Mobile is where PMax dumped most of its budget into cheap inventory that didn’t convert.
  • Desktop is the only viable device: £1.32 CPC is a real Shopping/Search price, and 1.35x ROAS is the closest to breakeven. But 1.35x on a £53 AOV product still doesn’t cover COGS and shipping.

The AOV Problem

Average conversion value: £53 (£4,578 / 86.4 conversions). Knife racks retail at ~£40-50. At the campaign’s average cost per conversion of £26 (£2,265 / 86.4), the margin after COGS and shipping is negligible or negative.

Even the campaign’s best period (Dec 29–Jan 4, 3.54x ROAS) had a £17 cost per conversion. For a £40-50 product, that leaves ~£10-15 gross margin before COGS — likely unprofitable.

This is a product category problem, not a campaign optimisation problem. Low-AOV products with commodity margins generally can’t sustain paid Shopping/PMax acquisition.

Timeline of Decline

PeriodROASWhat was happening
Dec 12–Jan 42.36-3.54xChristmas demand, higher conversion rates
Jan 5–112.44xPost-Christmas normalisation
Jan 12–250.79-0.91xCollapse — PMax exhausted high-intent audience, shifted to Display fill
Jan 26–Feb 11.14xBudget dropping but still loss-making
Feb 2–3Campaign pausedCorrect decision

Verdict

Correctly paused. The campaign had a window of viability during Christmas demand (higher conversion rates offset the low AOV) but couldn’t sustain performance once seasonal demand normalised. MAXIMIZE_CONVERSIONS on a low-AOV product with PMax’s tendency toward Display fill is a losing combination.

If knife racks are to be advertised again, they’d need:

  • A Shopping-only campaign (no PMax Display/YouTube bleed) — or PMax with account-level Display/YouTube exclusions
  • Target ROAS bidding with a realistic floor
  • Acceptance that volume will be very low given the product’s price point
  • Or bundling with higher-AOV products to increase average order value

Note: Search-only ROAS was 2.38x — marginal but potentially viable if Display waste is eliminated. The question is whether this holds without Christmas demand.