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  • Writer's pictureGraas

Detecting and Mitigating Performance Dips in Your Advertising Campaigns (for eCommerce)

Updated: Apr 19

Optimizing eCommerce Advertising Campaigns

This is the era of digital noise we’re in. And with digital noise comes heightened competition, which has made the eCommerce landscape more challenging than ever.

The cost of customer acquisition has skyrocketed, with a startling increase of nearly 60% over the past few years. eCommerce brands are now paying almost $30 for every customer they acquire.

This heightened expense can quickly begin to encroach upon other vital operational costs, threatening the very existence of an eCommerce business because the cost of getting new customers might actually go higher than their CLV.

The pressing question then arises - how do you keep a check on it to avoid your business from sinking into the abyss of failure? And the answer is — by ensuring you’re getting the most out of every penny you spend to acquire new customers or bring repeat sales.

In this blog, we’ll shed light on detecting and mitigating performance dips in your advertising campaigns, allowing you to make the most out of your advertisements with informed strategies.

How to identify the common signs of performance dips in ad campaigns?

The first step towards effectively mitigating performance dips in ad campaigns is to recognize the warning signs. You can leverage advanced analytical tools like Graas that offer an eagle's eye view of your campaign's performance. These tools provide a detailed analysis of metrics, trends, and patterns, transforming raw data into actionable insights.

Graas - Turbocharger Dashboard

By identifying correlations, pinpointing anomalies, and even predicting future performance based on historical data, such analytical tools equip you to make informed decisions and optimize your campaigns effectively.

Here are some crucial indicators that you can monitor through analytical tools:

1. Decreased Ad Reach

Ad reach refers to the total number of unique users who have seen your ad. When this number begins to dwindle, it signifies that your campaign is not achieving its intended visibility.

Various factors can contribute to this, from incorrect targeting settings or ad fatigue to platform algorithm changes or increased competition.

Regular monitoring can alert you to such a decline, facilitating early interventions like adjusting target demographics or tweaking campaign settings.

2. Decreased Click-Through Rate (CTR)

The CTR is the ratio of users who click on your ad to the number of total users who view it. A reduction in CTR often indicates that your ads fail to resonate with your audience. This may be due to bland ad copy, irrelevant visuals, or audience fatigue.

By using analytical tools, you can assess which ads are underperforming and brainstorm strategies to make them more engaging, from changing the copy to experimenting with different visual elements.

3. Higher Cost Per Click (CPC)

If you notice an upward trend in your CPC, it means you're shelling out more money for each click, reducing your overall return on investment.

This could be indicative of a declining ad quality score or intensified competition for keywords, causing your ads to be less competitive in auctions.

In such cases, it might be time to reassess your keyword strategy or improve your ad quality to get more value for your money.

4. Lower Conversion Rate

Your conversion rate is the percentage of users who complete a desired action (like making a purchase) after clicking on your ad.

The conversation rate can go down due to issues like an unappealing landing page, a less competitive product offering, or a mismatch between your ad and the landing page's content.

Regularly reviewing conversion rates and the associated user journey can help pinpoint where users are dropping off; you fix those issues and get hold of your leaking potential customers.

5. Decreased Return on Ad Spend (ROAS)

ROAS measures how much revenue you make for each dollar spent on advertising. A decrease in ROAS is a serious warning sign that your campaign's effectiveness is waning.

This could be a result of a combination of the issues discussed above or could signify broader market trends or shifts in consumer behavior.

Regular ROAS tracking can help you stay ahead of these shifts and adjust your strategy accordingly.

7 tips to improve ad performance

The digital advertising landscape is a puzzle that never stops evolving and requires savvy marketers to stay on their toes.

Below are seven robust strategies that can help you improve your ad performance:

1. Monitor your ads proactively

Staying ahead of the curve in the eCommerce landscape requires a proactive approach to ad monitoring. Instead of waiting for the campaign to end, leverage analytical tools to analyze your ad performance daily.

For instance, if you're running an ad for a limited-edition sneaker line, set up alerts to notify you when your ads are nearing their budget limit or underperforming. This could help you to reallocate the budget or tweak the campaign as needed.

Also, keep a close eye on your click-through rate (CTR) and conversion rate. If these metrics drop, it's an indication that your ads aren't hitting the mark, and it's time to revisit your strategy.

2. Analyze your competitors frequently

41% of marketers say that competitor analysis has helped them improve their ad campaigns and influenced the success of the campaign.

The eCommerce industry is fiercely competitive, making it crucial to keep a close eye on your competitors. Are they bidding on new keywords? Have they launched a new ad format? Regular competitor analysis can reveal insights that you can incorporate into your strategies.

For example, if a competitor's ad campaign for a similar product line is performing exceptionally well, analyze their ad structure, keywords, and landing pages for inspiration. Conversely, identify their campaign's shortcomings to avoid similar pitfalls.

3. Target your ads to the right audience

One of the biggest advantages of digital advertising is the ability to target your ads to the right audience. Infact, 72% of marketers say that targeting the right audience is the most important factor in the success of their ad campaigns.

If you're an online store selling high-end women's handbags, your primary audience might be professional women aged 25 to 45 with a high-income level. You can use demographic, interest, and behavioral data to ensure your ads are served to this audience.

Additionally, use negative keywords to prevent your ads from showing up in irrelevant searches, such as "cheap women's handbags." Consider using advanced targeting features like location targeting or dayparting to reach your audience when they are most likely to engage.

4. Create compelling ad copy

Your ad copy serves as a critical touchpoint – it's your initial pitch to potential customers, and if done right, it can set the stage for a successful interaction.

The right words can illuminate your product's unique selling points, create a sense of urgency, and entice customers to click and potentially make a purchase.

Here are some best practices to craft compelling ad copy that boosts eCommerce performance:

  • Convey the USP: Your ad copy should succinctly highlight what sets your product apart from competitors. Is it handmade, organic, or features a patented technology? Make it evident.

  • Instill a Sense of Urgency or Exclusivity: Customers are more likely to act swiftly if they believe an offer is limited. Phrases like "Limited stock - order now" or "Sale ends soon" can drive immediate action.

  • Craft Clear and Enticing CTAs: Your CTA is the final nudge, guiding users on what to do next. CTAs like "Shop the exclusive collection now" or "Start saving today" can prompt immediate clicks.

  • Make it Customer-Centric: Use the language your customers use and address their needs or pain points. This helps to establish a connection and makes your product feel like the perfect fit.

  • Keep it Clear and Concise: Your ad copy should be easy to read and understand. Avoid jargon and complicated language.

Remember, your ad copy is the first step in your customer's journey – make it compelling, engaging, and irresistible to click.

5. Use high-quality images and videos

Visual appeal plays a significant role in attracting and retaining user attention in eCommerce advertising.

If you're promoting a collection of designer clothing, use high-resolution images or videos that showcase the apparel's intricate details, quality, and style. Visuals should be engaging, compelling users to learn more about your product.

Also, ensure your visuals are relevant to your keywords and ad copy to boost your click-through rate.

6. Use ad extensions

Ad extensions are a powerful tool to enhance your ad's effectiveness by providing additional information.

For an eCommerce business, this could include displaying customer ratings, site links to specific product categories, or even providing information about free shipping.

These extensions not only make your ads more informative but also help them stand out in the crowded search results. And a report by Google shows that eCommerce businesses that use ad extensions see a 10% increase in click-through rates.

7. Use retargeting and remarketing

Retargeting allows you to re-engage users who have visited your site or interacted with your brand without making a purchase.

By showing them personalized ads featuring products they've shown interest in, you can keep your brand top-of-mind and nudge them towards conversion.

For example, if a user left a pair of shoes in their cart without purchasing, you can retarget them with an ad for those shoes, potentially offering a limited-time discount or emphasizing the scarcity of the product to encourage the purchase. It's a strategic way to convert window-shoppers into actual buyers.

On a Concluding Note

The eCommerce market is getting more competitive with each passing day. And it’s more important than ever to be able to proactively monitor the performance of your ads. By doing so, you can ensure that your ads are reaching the right people and that you are not wasting your resources on ineffective campaigns.

By following the above-mentioned tips, you can improve the performance of your ads and get more out of your marketing budget.

We also have a way for you to make this process more efficient, intuitive, and less resource-intensive? Enter the Graas performance marketing & growth solution.

This program, powered by an advanced AI engine, provides a comprehensive solution for your eCommerce ad campaign needs. It offers real-time tracking, proactive alerts, and intelligent insights that allow you to stay ahead of the curve.

Tackling advertising performance dips is a challenge, but it's a challenge that can be overcome with the right tools and strategies.

Ready to take your eCommerce advertising campaigns to the next level?


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