The Challenge: Profitable on Meta Dashboard, Losing Cash in Bank
The brand's media buying agency reported a 3.2x ROAS on Meta Advantage+ campaigns. However, Shopify actual bank deposits told a different story: after subtracting 45% COGS, 12% international shipping, and 8% return rates, the business was operating at negative net cashflow.
Analysis identified double-counting: customers exposed to Meta top-of-funnel ads were searching the brand on Google Search, where Google Ads also claimed 100% conversion credit.
The 365Loopa Evidence-Based Intervention
1. Blended MER & Net Contribution Modeling
Separated platform reported ROAS from commercial ROI, establishing a strict 2.2x breakeven threshold factoring in shipping and refunds.
2. 3-3-3 Sandbox Testing & 20% Budget Step Rule
Prohibited ad-hoc budget spikes, capping scaling at 20% increments every 72 hours while testing 3 Hook variants against 3 proof formats.
3. 2.8 Frequency Alert & Creative Rotation
Instituted automatic creative retirement when 7-day frequency crossed 2.8, rotating fresh UGC hooks without disrupting ad set learning.
The Business Outcome
Within 45 days, the brand's Blended MER stabilized from 1.65x to 2.48x. By cutting double-counted ad waste and enforcing rigorous scaling gates, net monthly contribution margin expanded from $18,200 to $60,400.