Case study · Paid search & incrementality

Spending more on our best-ROAS channel would have bought nothing.

Brand search clicks fell about a quarter. The plan was to fund the channel back up. Impression share was already 96%, click elasticity to bid was zero, and most of the decline was one campaign someone turned off.

When2026 · one week's question, six weeks' answer
RoleSole analyst
DataAuction insights · impression share · 6,000 campaign-days · a geo holdout
MethodsImpression-share ceiling · panel elasticity · marginal-cost math · holdout DiD

The problem

Brand paid search was the best line on the ROAS report: about 11 attributed, about 4 after incrementality. Then clicks fell 27% year over year in one week. Leadership's question was reasonable: would spending more have helped? Everyone's reflex was yes. Best channel, clicks down, fund it.

The method

What it showed

You cannot buy back to last year at any price
Brand paid-search clicks, one fiscal week · last year vs. this year vs. the ceiling at 100% impression share on every brand campaign · figures perturbed
last year's clicks 160K 117K 152K still 5% short Last year This year (down 27%) This year at 100% impression share every brand campaign, unlimited budget
Budget was never the constraint. The channel was already capturing 96% of the impressions it was eligible for. The remaining 4% would not have closed the gap, and the elasticity says it could not have been bought anyway.
Where brand impressions were actually lost
Share of eligible brand impressions lost to budget vs. lost to rank, by month, 18 months · figures perturbed
40%30%20%10%0% lost to rank: 12% to 39% lost to budget: 0.0% to 0.4% for twelve straight months 18 mo ago9 mo agothis week
What the report called a budget problem was a rank and restructure problem. Money does not fix rank, and the restructure was one switch.
The best number on the ROAS report belonged to the one channel that could not absorb another dollar.

Six weeks later, the opposite mistake. Bids were cut 31%. First-slot share on searches for our own brand fell from 80% to 44%, the worst in two and a half years, and no-name resellers took most of the gap. You cannot buy more brand clicks, but you can give them away. The tell that it was us and not a competitor: being outbid pushes your CPC up. Ours fell 34% in ten days, on our own bid calendar.

What changed

Technical notes, for the people who will ask

Impression share. Budget-lost and rank-lost share pulled from the campaign cross-device statistics table, where those fields actually live, weighted by eligible impressions. The ceiling calculation scales each brand campaign's clicks to 100% share and sums.

Elasticity. Panel of 5,981 campaign-days across 28 campaigns, January 2025 to July 2026. log(clicks) on log(CPC) with campaign fixed effects and eligible impressions as the demand control: +0.075 (se 0.107). Current fiscal year only: +0.03. First differences: -0.10. Uncontrolled: +0.79. Mechanism split: impression share responds to CPC (+0.60 on the logit) while click-through rate falls (-0.12), so clicks net to zero.

Marginal cost. With elasticity ε, the marginal cost of a click is CPC × (1 + 1/ε). At the week's $4.82 CPC and $43.61 attributed revenue per click, ε = 0.8 implies $10.84 per incremental click and a 4.0x marginal ROAS, which requires more than 62% incrementality to clear a 40% margin. Measured elasticity near zero makes the marginal cost effectively unbounded.

Holdout. July 2025 geo test: brand paid search reduced 61% in test DMAs. Organic brand +9% in test vs. control; shopping, local inventory, and non-brand flat (difference-in-differences p-values 0.63 to 0.86). Read: roughly 65% of brand paid clicks incremental, 35% substituted by organic.

The other case studies: the organic decline, the mart, and the dashboard suite. Try the planning model that puts the ceiling and the elasticities to work. Or back to all work.

Click counts, shares, and dollar figures are perturbed; campaign names are generalized. The tests, the elasticity specification, the holdout, and the decisions are real.