John Moran analyzes an account that has a 40% decline in traffic and 81% drop in sessions by socials. He dives into the account to figure out what’s causing the declines. He also discusses why running Performance Max campaigns and Meta Ads for this particular business might be causing more harm than good, the potential risks and benefits of different advertising strategies, including the importance of balancing profitability and scale. He then suggests alternative strategies and where to focus on to achieve business growth. Listen to this episode to learn more.

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0:00 Intro

0:19 When Performance Max with Meta Ads Might Be a Bad Mix for Your Advertising Efforts

6:50 Decline in new customers

13:27 Strategies recommended by John

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And today we're going to be talking about how a client

2

doubled his margin and revenue,

this year working with us compared

3

to last year of what he was doing.

4

It's really working out for this client

pretty well, even though it's a wonky

5

strategy per se compared to the number of

strategies that, A lot of times that we do

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How's it going everyone this is josh

with another video for you guys and

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today we're talking about how a client

Doubled his margin and revenue this

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year working with us compared to last

year of what he was doing So let's go

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ahead and take a look at the back end

numbers So he emailed me, his numbers

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for 23 and 2024 for january and february

So in january 23, he made about 12.

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6 in revenue You And in

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6 in January.

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Then if we take a look at

February, he made about 11.

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2 and in February, 24, he made about 24.

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8.

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So we basically doubled his income.

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And his revenue and those two

months that he had on with a certain

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campaign that he had on versus our

strategies and what we're doing.

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this is no seasonality at all.

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So this is like month compared to month.

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So there's no, nothing going to be

like wonky or going on with that.

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This is comparing 20, 24

numbers last year to 23 numbers

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and what he was doing before.

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so this client says refers PCs, we took

a look at the time for between January

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and February compared it to the previous

year, what they were doing the route, the

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back, that we're using standard shopping.

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And then last year that they were running

P max, so they're pretty heavily into it.

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They had Dell, hp, Acer, Alienware,

and the corresponding campaigns.

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And then we have something similar as

well where we have, Dell, hp, Acer, and

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the corresponding campaigns as well.

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You can see that we're spinning

about 17% less than last year.

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We have about 6% increase in R.

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It doesn't really offset the budget,

though that was down about 17%.

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conversions are down by 56%.

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CPAs up by 92%, and the

average CPC is down by 41%.

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So you could say, this is

some really wonky numbers.

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let's start with the average CPC.

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And go from there.

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So usually we'll see an increase in CPCs

when you switch away from PMAX to standard

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shopping, but this is a different story.

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It's actually down by 41%.

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So you see right off the bat, we

have different bid strategies.

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We have maximized clicks or one, two,

three, four, five, six campaigns.

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and all those campaigns are pretty

much standard chomping top of funnel,

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campaigns that have maximized clicks.

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So those are all pretty

much cold traffic channels.

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And the reason why, the CPCs are

down is because we're not bidding

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for the absolute top, we're bidding

for a second or third position.

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And another reason why we're doing

that is because their stock kind of

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changes in and out pretty quickly.

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So they'll have a product in stock for

about a week, and then that one will go

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out of stock and then they'll have another

product that shows up that they sell.

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So keep in mind that

they sell referred PCs.

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So they can't manufacture

or produce them themselves.

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So I have an F a set

standard for what they buy.

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It's get what they take from

their distributors that they get.

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So they could have a laptop that

might have a slightly different,

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RAM or slightly different SSD drive.

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And that completely

changes the part number.

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you're like the, skew or the GTI ends.

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And so Google will think that's

a completely different product.

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So with maximize clicks, a thought

process is Google doesn't really

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have to learn what that product is as

often with the changes that we have,

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and also with the, competitiveness

of the markets, one or two.

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And there's so many different

types of costs and they're

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pretty competitive in their cost.

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We're showing second or third because

we know that people can be shopping

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around for different prices or different

products And they're doing pretty well

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with those App bidding strategies.

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So that's why the cpcs are so far down

Then we take a look at the cpa why it's up

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by 92 so We know that with pmax it follows

the user a lot more often in the journey

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of the client or the customer You So with

standard shopping, the business that we

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have here, we're basically only showing

like once or twice to an individual or

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client or customer, versus where in PMAX,

you're going to be following that user.

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It's going to be collecting that data

and holding onto that data or that

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customer a lot longer in that timeframe.

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So it's going to be remarketing

into, let's say, search.

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It could go into shopping.

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It can go into display remarketing.

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It can go into, Gmail.

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So it's spinning little by little

just to hold onto that data.

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And that client, and then the conversions

will be, more populated inside in app

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because, the acquisition, is pulled

more, and easier since it's remarketing.

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So with this, with standard shopping.

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It's more top of funnel cold traffic

and a lot less into remarketing.

86

So you're going to hit the

client one or two times, that

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data will get lost eventually.

88

And then they'll convert either

organic or direct, it's not

89

pulled into, in app and Google.

90

So you'll lose that acquisition.

91

So that's why the conversions are.

92

Are a lot less as well.

93

Another reason why it's less

too is because we're running

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into a higher margin campaign.

95

So we segment this client out

into, high margin Dell, mid to

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low for servers, high margin.

97

So instead of just showing for,

certain products or all the products

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all at once, we only pick the

ones that, have a higher margin.

99

And so that way, with those conversions,

it's going to be a lot more valuable

100

to us than let's say, something

that costs less over here and it's

101

not as profitable, maybe 10 percent

margin versus a 30 percent margin.

102

So what I've seen Google likes

to do is let's say you threw

103

everything into one campaign.

104

And you have all those products in there.

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It's going to go after the

easiest converting product.

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And most of the time it's usually

the lower cost products, that get

107

the most conversions because it's

the easiest or easiest to get

108

a conversion on those products.

109

So this is how we have it segmented out.

110

And that's why other conversions

are a lot less as well.

111

and then with row, that's the same

concept of, not everything gets converted.

112

Or, Basically shown inside in app

when you're just running cold traffic.

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The attribution is a lot more loss

versus the PMAX and remarketing.

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That basically pretty

much sums up this account.

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touching base up with maximized clicks.

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it's not the end all be all, I wouldn't

change your account to maximize clicks.

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Unless you want to do a test first,

but, how it works for this client.

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Like I said before, we don't want

to show up for that first position.

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We're like all the other

competitors are doing.

120

We don't want to be into

remarketing display.

121

like maybe the other

competitors are doing.

122

So we're hacking Google ads and saying,

Hey, we only want to show up for this,

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we don't want to show up as maximum out

of budget and get the maximum clicks and

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get the maximum exposure that we want.

125

Knowing that people are

going to be shopping around.

126

And, get the most out of what we're doing.

127

So it's really, we're not for this

client pretty well, even though it's

128

a wonky strategy per se, compared

to the two, the number of strategies

129

that, a lot of times that we do.

130

but that's why we always double check

and make sure to run tests, making sure

131

it lines up with the backend numbers.

132

And then learning new things as we

go along too, because everything can

133

be different, every platform or, the

market that you're in can be different

134

and so different strategies can

have different effect on you guys.

135

So it's not we have a certain

way of doing things only.

136

we just make sure that we do

some tasks and make sure that

137

the backend numbers follow suit.

138

So that's what we do it here at Solite.

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And, but yeah, that's pretty much it.

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And, I'll see you guys next time..