No Wonder the Ad Performance Has Declined! It’s Actually Due to These Reasons

No Wonder the Ad Performance Has Declined! It’s Actually Due to These Reasons

Discover common ad mistakes in Malaysia and how to fix them to boost conversions in today’s competitive ad space.



1. Sudden Budget Increases A common mistake many advertisers make is suddenly raising the budget for an ad that’s performing well. This often leads to a rapid decline in ad performance. The reason is:
  • Facebook's algorithm takes timeto budget changes, and if the change is too quick, it disrupts the current ad learning phase.
  • It’s generally recommended to adjust the budget within a 20% range.For example: If your ad budget is RM50/day, don’t adjust by more than RM10 at once.
Tips: Gradually increase your budget to allow the algorithm to adjust, which helps maintain stable ad performance.

2. Ignoring Target Audience Characteristics (Age/Gender/Location) Many advertisers like to set "broad audience" targeting, covering all age ranges (18-65+) and genders. On the surface, this seems to expand the reach and expose the ad to more people, but in reality:
  • If your target audience is focused on a specific age group or demographic, such as 25-40 years old, a broad audience setting will result in higher costs and lower precision..
  • Example:A real estate ad targeted at 18-65+, but most interested buyers are actually between 30-50 years old. Casting a wide net means you get many inquiries from leads that are unlikely to convert, wasting time and budget.
Optimization Suggestion:
  • Precisely target age groups and genders based on the product.;.
  • Optimize by region: For example, real estate ads can focus on specific cities or areas.
3. Don’t Blindly Pursue Low Cost Per Result (CPR) Many people mistakenly believe that the lower the CPR (Cost Per Result), the better the ad performance. But the reality is:
  • A low CPR may generate more leads, but their quality might be poor.
    • For example, image ads may have a low cost but lack sufficient information, attracting more inquiries but fewer high-quality leads.
    • 视频广告虽然CPR可能更高,但它能传递更多信息,吸引的是真正有意向的用户.
Case Comparison:
  • Image ad: CPR RM5, but conversion rate is only 10%.
  • Video ad: CPR RM10, but conversion rate is 30%. In this case,the video ad provides greater ad effectiveness,even though the cost per result is higher.
  4. Setting Ads Correctly is Just the Foundation Launching ads isn’t just about setting the target audience and budget; it also requires a comprehensive marketing strategy. Optimize the following aspects:
  • Copy: Be concise, attractive, and highlight the user’s pain points while offering solutions.
  • Design: High-quality images or video edits to ensure eye-catching visuals.
  • User Interaction: Set up an efficient reply SOP to respond promptly to user inquiries.
  • Marketing Strategy: Plan the content of your ads (e.g., event promotions, coupon incentives) to improve overall conversion rates.
 
The decline in ad performance may result from a combination of factors. The solution requires a precise analysis of the issues:
  1. Avoid sudden budget changes and gradually increase the budget to stabilize ad growth.
  2. Precisely target the audience without wasting budget on ineffective groups.
  3. Focus on ad effectiveness, not just CPR, and choose content formats that attract quality users.
  4. Optimize ad strategies across copy, design, and user communication.
Advertising isn’t just about “burning money” – it requires continuous optimization and strategic adjustments. Hopefully, these insights can inspire your ad campaigns and help you double your ad effectiveness!

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