The Dark Side of Google ROAS: Why Your Numbers Are Lying to You
- Diana Dela Cruz
- Nov 22
- 6 min read
TL;DR
High ROAS may be a misleading metric because branded search inflates performance numbers without driving net-new customer growth. Most people searching your brand already intend to buy, so Google takes credit for demand other channels created.
Real growth comes from non-branded prospecting, new customer ROAS, and incrementality - not from pouring more budget into branded terms. When brands split branded vs non-branded campaigns, efficiency improves, and new buyer ROAS increases significantly.
Fixing ROAS requires a full-funnel, cross-channel strategy that separates intent, measures net-new impact, and focuses on demand creation as much as demand capture. This is how brands scale beyond superficial numbers and build long-term revenue engines.
Every marketer loves a high ROAS. It looks clean. It’s simple. It signals efficiency. And on Google Ads- especially in search- it’s incredibly common to see ROAS numbers that outperform all other channels. But here’s the uncomfortable truth:
Google ROAS has a dark side- and for most brands, it creates a dangerous illusion of growth.
This illusion is amplified by the way Google captures demand through high-intent branded search, then takes full credit for conversions that were going to happen anyway. Branded campaigns dramatically outperform non-branded ones, not because they’re better - but because the intent behind them is completely different. And when brands optimize toward inflated ROAS, their growth stalls… even though the numbers look great on paper.
This article breaks down why this happens, how to identify it, and what to do instead.
What Most Marketers Get Wrong About ROAS
ROAS is the most commonly used Google Ads metric - and the most misunderstood.
ROAS Doesn’t Equal Growth
ROAS only tells you the revenue generated divided by ad spend. It does not tell you:
Whether those customers were new
Whether those customers would have purchased anyway
Whether your ads created incremental sales
Whether you are expanding market share
A campaign can have a 10x ROAS and still produce zero net-new customers.
Why Google ROAS Often Looks Better Than It Really Is
Google Ads naturally favors branded searches because:
The user already knows your brand
They’re closer to a purchase
Competition is low
Google's algorithm prioritizes high-intent keywords
So branded campaigns look like superheroes, but the intent is doing all the work- not your ads.
Platform Incentives Create Bias
Google optimizes toward whatever metric you tell it to. If you optimize toward ROAS, Google pushes spend toward:
Your brand name
Variations of your brand name
SKU-level branded queries
Winner keywords with existing demand
This keeps ROAS high, but sometimes artificially so. You’re capturing demand - not creating it.
The Hidden Problem With Branded Search
Branded search ROAS is always high. But the reason is not performance - it’s user behavior.
People Who Search Your Brand Already Want to Buy
When someone searches:
“YourBrand”
“YourBrand coupon”
“YourBrand shipping”
“YourBrand support”
They are already deep in the funnel. Google simply captures the purchase that all your other marketing efforts influenced.
The Halo Effect: Other Campaigns Do the Work
Branded search rides on the shoulders of:
Meta ads
TikTok creatives
Influencers
Email + SMS
Organic social
PR + brand moments
SEO + content
These channels create demand. In this case, Google captures it and takes credit.
Last-Touch Attribution Makes This Worse
Google counts a conversion if it was the last click- even if:
Meta drove awareness
Email drove the return visit
TikTok created interest
A friend recommended the brand
Google still claims full credit. This inflates ROAS artificially.
The Metric That Actually Reveals True Growth: New Customer ROAS
If you want to see the truth about your performance, ROAS isn’t enough.
What Is New Customer ROAS (NCROAS)?
NCROAS = Revenue from net-new customers only ÷ Ad Spend
This reveals:
Real market expansion
How effectively your ads acquire new buyers
Whether your brand is scaling, not just converting existing demand
Why New Customer ROAS Matters More Than ROAS
ROAS includes repeat purchasers and people already familiar with your brand. NCROAS isolates true acquisition. If NCROAS increases, your brand is growing. If NCROAS stagnates or declines, your brand is plateauing- even if ROAS looks amazing.
Incrementality: The North Star Metric
Incremental lift answers:
“How many conversions happened because of the ad - versus what would’ve happened anyway?”
This matters because:
Branded search has low incrementality
Non-branded search has high (or higher) incrementality
Social ads have even higher incrementality, depending on creative and audience
Google won’t show you this metric. You must structure accounts deliberately to reveal it.
Case Study: How Separating Branded & Non-Branded Fixed ROAS Deception
Among the RCKSTR Media case studies, a fast-growing jewelry brand is the most directly relevant example of how branded search impacts ROAS and true performance. The brand's Ads were heavily skewed by branded searches. Because branded terms took most of the credit, ROAS looked strong - but new buyer acquisition was underperforming.
What RCKSTR Changed
RCKSTR restructured the jewelry brand's Google account by:
Separating branded vs non-branded search
Prioritizing high-intent non-branded prospecting
Restructuring creative + audience segmentation
Redirecting spend toward incremental growth campaigns
Results
After restructuring:
CPA dropped 6%
ROAS increased +11%
New Buyer ROAS increased +15%
By isolating branded terms and scaling non-branded prospecting, RCKSTR unlocked real performance - not inflated numbers. This case study directly proves the core concept of this article: branded ROAS is not a growth lever.
How to Fix Your Google ROAS Strategy (Step-by-Step)
Here is the exact framework used by high-performing DTC brands:
Step 1: Separate Branded vs Non-Branded Campaigns
This removes ROAS contamination. Each campaign now aligns with its intent level.
Branded campaign goals:
Protect your brand name
Capture existing demand
Keep CPCs low
Avoid competitor poaching
Non-branded campaign goals:
Acquire net-new customers
Expand market share
Drive incremental revenue
Step 2: Use Phrase Match for Control + Accuracy
Phrase match balances:
Intent accuracy
Scale
Relevance
Manageable CPCs
It avoids the chaos of broad match while still reaching new audiences.
Step 3: Build Creative Context Into Ad Copy
Non-branded search ads need:
Problem-solving angles
Category education
Social proof
Differentiators
Clear value propositions
Branded search does not.
Step 4: Measure Performance With NCROAS & Incrementality
Shift away from:
Shift toward:
New buyer ROAS
Incremental lift
Contribution margin
Step 5: Align Your Google Strategy With Meta + TikTok
Social creates demand. Google captures it. When Google tries to also create demand, it becomes expensive. When Meta/TikTok create demand and Google captures it efficiently, scaling accelerates.
Real Examples of the ROAS Illusion
Let’s break down the common pattern:
Inflation Pattern
Brand launches ads across channels.
Awareness increases.
Searches for the brand name increase.
Google branded campaigns capture these customers.
ROAS skyrockets.
Brand mistakenly shifts budget to branded campaigns.
Growth stalls.
What Happens When You Shift Spend to Non-Branded
New customer volume increases
Revenue scales
Incremental lift increases
Blended CAC improves
Lifetime value improves
True ROAS becomes more accurate
The Right Way to Use Branded Search
Branded search is not a growth strategy. It is a defensive moat.
Use branded campaigns to:
Protect from competitor bidding
Ensure visibility for your own name
Maintain cheap incremental sales
Ensure a smooth brand experience
But limit spend. Do not scale branded terms aggressively. Their job is to capture, not create.
Conclusion
Google ROAS is one of the most seductive metrics in paid media- but also one of the most misleading.
If you rely on ROAS alone:
You’ll overvalue branded search
You’ll scale the wrong campaigns
You’ll misjudge true performance
You’ll stall growth even when numbers look great
True scaling happens when you pair:
Demand creation (Meta, TikTok, influencers)
Demand capture (Google non-branded search)
Brand protection (Google branded search)
Incremental measurement (NCROAS, LTV/CAC, new buyer attribution)
If you want this built for you, RCKSTR Media can architect the entire system, restructure your search account, and create a performance engine that scales reliably.
FAQ
Why is Google ROAS misleading for most brands?
Because sometimes most of Google’s ROAS comes from branded search - customers who were already going to buy - ROAS appears high even when the ads aren’t driving real growth or new customers.
Should I still run branded search campaigns?
Yes, but only for brand protection and high-intent capture - not for scaling - because branded search doesn’t drive net-new customer acquisition.
What’s the difference between branded vs non-branded search?
Branded search captures people already looking for your brand, while non-branded search reaches new potential customers who haven’t discovered you yet.
How do you measure incremental lift in Google Ads?
Incremental lift is measured through holdout tests, geo splits, or new customer performance tracking to determine how many conversions were truly caused by ads.
What metric matters more than ROAS for growth-focused brands?
New Customer ROAS (NCROAS) matters more because it focuses only on net-new buyers, revealing true acquisition efficiency and growth.
How does last-touch attribution inflate Google performance?
Last-touch attribution gives Google full credit for conversions even when other channels created the demand, making Google appear more effective than it is.
What is the ideal percentage split between branded and non-branded search?
Most brands scale best by allocating 10-20% of spend to branded search and 80-90% to non-branded prospecting where real growth occurs.
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