Experiencing a drop in your paid ads performance can be quite concerning. Especially when you can’t figure out why it has happened. Below are 4 possible reasons why you might notice a drop in performance, and what you can do to improve them.
1. Reduce the number of times your ads are shown to each member
If you are noticing a gradual decrease in your campaign’s performance, it may be the case that your audience is being shown your ads multiple times, causing ad fatigue. This results in them getting bored of your ads and almost automatically scrolling past without paying them any attention.
One way you can assess whether this is the cause of your performance drop is to view the changes in your click-through rate (CTR) and cost per click (CPC) of your ads over the previous weeks/months. If you notice that their CTR is decreasing and their CPC is increasing, chances are that ad fatigue is taking place. You can also view the “frequency” metric to understand how often your audience is seeing each ad.
A solution to this is to expand your audience size so that your budget can be spread out more to include a wider group of people. It may still be possible for your ads to appear more than once to some members, but this will reduce the likelihood of it happening. You could also reduce the budget of your campaign to lower the number of impressions you receive in total, therefore decreasing the likelihood that your ads will appear to the same people.
2. A/B test your ads, pausing the worst performers
There are an unlimited number of ways you can customise ads to put your messages across. From different ad copy to your choice of images, you have a lot of different combinations and techniques that can be used. How would you know which ad will perform best?
The best way to find out what works is to do an A/B test by creating multiple ads and changing one thing about them – whether it’s the choice of words in the headline, or the image used. If some ads are receiving better results than others, you may want to pause the poor performers so that the rest of your budget is spent only delivering the ads that are working better. This data can also be very informative for future campaigns you may wish to do.
3. Review a breakdown of each demographic’s performance
The longer your ads have been running, the more data you will have on how each demographic has reacted to your ads. Many paid advertising platforms will have an option for you to segment your data and view how each audience group has been reacting to your posts. You may realise that some groups are performing better than others.
If the goal of your ad campaigns are to get members to click through on your ad, for example, you may want to remove a demographic that has a lower CTR than other groups that you are targeting. This will then give your ads a better chance of being viewed by people who are more likely to click through. Understanding who your target audience is and why some members have performed poorly will help you increase the effectiveness and results of your future campaigns.
4. View your competition and see what is happening in your industry
Still struggling to find an explanation for the drop in your ads performance? It might be worth checking whether anything has changed in your industry. Maybe your competition has increased their marketing spend, or an event has taken place that is disrupting your industry as a whole.
Some paid advertising platforms are easier to do competitive analysis than others. Google Ads, for example, shows you the percentage of times your ads are displaying for your relevant keywords, and even goes further to show whether your ad’s rank or budget is the cause for this. Improving the relevancy and/or budget of your campaigns can lift your ads back up to the top and increase their visibility.
Competitor analysis on Facebook Ads is a little more difficult, however it can be done. “Auction competition” will display a graph of the increases in competition as a percentage change of the average. Seeing a continual rise in competition for your ads may push you to start thinking about changing your marketing objective, or targeting a slightly different audience temporarily until the competition decreases.
Alternatively, you can check out Facebook’s “Ad Library” to view the ads that your competitors are currently running or have run in the past. This is a good way to spot if they are doing something better or if they are running any promotions that might be taking customers away from your business. You can then use this information to make improvements on your current ads.
Understanding the data that you are receiving from your ad campaigns is vital in knowing how your ads are performing. Comparing the results to previous periods can help inform you on whether the drop in performance is steep or gradual, which can then help you figure out what the cause of the drop was.
It may be due to your ads losing relevance to your audience members, or your competitors increasing their marketing efforts. Whatever the reason, you can adjust your strategy to improve the results you are receiving and meet your marketing goals.
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