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Hey guys,
āPractice does not make perfect. Only perfect practice makes perfect.ā
ā Vince Lombardi
Letās get into itš
GeoTargetly
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For more information, visit GeoTargetly
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š Automatic geo redirects - always relevant content
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Elevate your websiteās performance today with Geotargetlyās location-based personalization tools!
DEEP DIVE WITH IBRAHIM
Could Google and Meta Ads Inefficiencies Become Your Secret Weapon?
Happy Wednesday!
This week, Iām going to try to shed some light on a common issue many e-commerce and small business owners faceāinefficiencies in Google and Meta Ads. Iām not here to bash these platforms. Instead, Iāll show you how to turn these weaknesses into strengths.
Could Ad Inefficiencies be Costing You?
Google and Meta Ads are designed to reach vast audiences by monetizing every possible user interaction. But hereās the catch: their objectives arenāt perfectly aligned with yours. While they aim to maximize their revenue by serving ads to as many people as possible, you want your ads to reach the right peopleāthose most likely to convert into loyal customers.
If these platforms are showing your ads to users who arenāt your ideal customers, this could mean wasted spend. Moreover, your ads are competing with those of your competitors, splitting the audience between all advertisers. The key to success is ensuring you get the lionās share of attention from your most valuable audience segments.
If you are spending over $8000 a month, our DTC Ad360 team can run a free audit for you and tell you how to optimize your ads
The good news? You donāt have to settle for these inefficiencies.
You can take control and optimize your campaigns to outperform your competitors. By leveraging DTC Ad360ās advanced AI-driven media buying strategies, you can ensure your ad spend is working hard for youānot just lining the pockets of Google and Meta.
Hereās how:
1 . Underperforming Age Groups
The challenge - Our audits regularly reveal that the 65+ age group received a substantial portion of the budget, despite being one of the least effective in terms of ROAS.
Why? - Platforms like Facebook might do this because the 55-65+ demographic is a major user base, making it easy to fill ad space.
The solution - Your goal should be to maximize spending on groups that deliver the best results, so by strategically placing age restrictions on your campaigns or letting our AI automatically adjust them for every parameter, including age, your budget is spent more effectively.
2. Gender-Based Misallocations
The challenge - In a recent analysis, we observed that while targeting women resulted in a Purchase ROAS of 7.25, targeting men achieved a higher ROAS of 8.71. Despite this, the budget allocation was significantly skewed towards women, with ā¬12,466.70 spent compared to only ā¬5,239.39 on men.
Why? - Platforms like Google and Meta aim to cover a broad demographic spectrum, sometimes at the expense of maximizing your campaignās efficiency.
The solution - By reallocating more budget to the gender that delivers a higher ROAS, you could significantly enhance your overall return on investment. Our AI-driven platform automatically optimizes these allocations, ensuring that your budget is focused on where it will generate the best results.
3. Platform Performance Disparities
The challenge - We discovered that, despite having a lower ROAS than Instagram, Facebook received the majority of the budget.
Why? - Meta might prioritize Facebook because itās their flagship platform and they have more inventory to fill there.
The solution - Shifting more budget to higher-performing platforms like Instagram could significantly increase your overall campaign efficiency. We can automatically adjust these platform allocations to ensure your budget is always working hard for you.
4. Inefficient Ad Placement
The challenge - One audit highlighted that significant budgets were spent on Facebook Feed and Instagram Reels ads, which underperformed compared to Instagram Stories ads.
Why? Meta might continue to allocate budget to these placements because they have ample inventory.
The solution - By isolating these underperforming placements and reallocating funds to better-performing ones, you can optimize your campaign outcomes. Our AI can manage this automatically, ensuring every dollar is spent where itās most effective.
5. Geographic Misallocations
The challenge - In one audit, we identified a significant budget allocation to London, where the cost per conversion was $16.30. However, cities like Birmingham and Manchester, which had much lower costs per conversion at $12.25 and $11.95 respectively, received significantly less budget.
Why? Platforms like Google or Meta often prioritize spending in larger, more populous cities like London to maximize their reachāeven if itās not the most efficient for your specific goals.
The solution - By strategically redistributing the budget to cities with a lower cost per conversion, you could significantly lower your costs. Our AI can automatically manage these geographic adjustments for you, ensuring that your ads are shown in the most cost-effective locations.
6. Day of the Week Misallocations
The challenge - An analysis of ad performance by day of the week revealed that Monday had the lowest cost per conversion at $9.70, resulting in the highest conversion value per cost (6.49). However, a significant budget was also spent on other days like Tuesday and Thursday, where the cost per conversion was much higher at $13.01 and $14.34, respectively.
Why? Platforms like Google and Meta may spread your budget evenly across the week to maintain consistent ad delivery, even if certain days perform worse than others.
The solution - By reallocating more budget to high-performing days, you could maximize your ROI. Our AI can automatically adjust your budget distribution throughout the week, ensuring your spending is optimized for the days that deliver the best results.
7. Time of Day Misallocations
The challenge - Our audit revealed significant inefficiencies in budget allocation throughout the day. For instance, while the cost per lead during the 16:00 to 16:59 time slot was only ā¬6.50, a substantial portion of the budget was also spent during the 07:00 to 07:59 time slot, where the cost per lead spiked to ā¬11.23.
Why? Platforms like Google and Meta often distribute your budget evenly or based on user activity, rather than focusing on generating the most cost-effective results.
The solution - You can significantly improve the efficiency of your campaigns by reallocating more of your budget to time slots that deliver a lower cost per lead. Our AI can automatically adjust your spending across different times of day so that your ads are shown when theyāre most likely to yield the best results.
How Can I Combat so many Ads challenges?
Itās important to recognize that the examples weāve coveredāmisallocations by age group, gender, time of day, and moreāare just the tip of the iceberg.
You could manage these optimizations yourself, but it would require a tremendous amount of time, attention, and constant monitoring to ensure every parameter is finely tuned to suit your goals. This is time that could be better spent focusing on what really matters: improving your product, enhancing your store or website, and engaging with your customers.
Hiring a professional to manage your ads can alleviate some of this burden, but partnering with a pro whoās equipped with the best AI-driven tools can possibly excel your campaign success with minimal effort on your part.
The Results Speak for Themselves
On average, businesses that implement these strategies see a 10% to 30% increase in performance. Thatās a significant boost in ROI that can make all the difference in todayās competitive market.
Ready to take your Google and Meta Ads to the next level? Weāre here to help. If you are spending more than $8,000 then book your free audit today:
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