SaaS uses LTV-based attribution; physical products use immediate ROAS. Blending them creates false signals about what's actually profitable.
Example: SaaS campaign looks unprofitable at 30-day ROAS but delivers 3x LTV
SaaS buyers and product buyers often have different intent signals. One campaign can't efficiently target both.
Example: PMax optimizing for cheaper product sales, starving SaaS signups
Existing software subscribers might buy physical products anyway, but you're paying to acquire them through ads as 'new' customers.
Example: 40% of product purchases from existing SaaS subscribers who didn't need an ad
With a single asset group, Google optimizes for aggregate ROAS by heavily favoring your top 5-10 products. The rest of your catalog gets almost no impressions. Worse, low-margin products drag down profitability while appearing successful in aggregate.
Fix: Segment products by performance tier: Winners (scale), Potentials (test), Underperformers (cut or fix). Create separate asset groups for each.
PMax claims credit for brand searches that would've cost $0.30 through a dedicated brand campaign. Without exclusions, you're paying 3-5x more for customers already looking for you.
Fix: Add brand exclusions to PMax and run a separate Brand Search campaign with exact match keywords.
Missing GTINs, generic titles, no custom labels, and missing sale prices hurt your Shopping ad performance. Software vs product feeds mixed
Fix: Maintain separate campaigns for SaaS vs. physical products
Your 5x ROAS might look great until you realize 70% of sales are repeat customers who would've bought anyway. You're paying to acquire customers you already have.
Fix: Segment reporting by new vs returning customers. Set up customer match lists and analyze true CAC.
Not all campaign types work for saas + physical products stores. Here's what to skip:
Confuses optimization signals
Will optimize for cheaper conversions, often products
Dilutes message and conversion
Follow these best practices to maximize your SaaS + Physical Products Google Ads performance:
Budget: 35-45% • Target ROAS: 2-3x (but 6-10x LTV)
Budget: 30-40% • Target ROAS: 3.5-5x
Budget: 15-20% • Target ROAS: 4-8x
Budget: 10-15% • Target ROAS: 8-15x