Ads Performance Analytics
Analysis of the performance of Facebook ads aimed at understanding root cause of trends
Problem Statement
A US-based business owner was experiencing declining conversions from facebook ads in recent months and wanted to understand the root cause of this trend. An analysis of ads performance data was required to throw light on possible reasons and inform future marketing strategy.
Challenges
The data was limited to ad performance metrics. Data on customer perceptions and preferences was lacking making it difficult to understand the 'whys' of the trends.
Solution
Summary
- I conducted thorough descriptive analysis to understand the underlying trends in ad performance including analyses of Customer Acquisition Cost (CAC), Return on Ad Spend (ROAS), Average Order Value (AOV), Reach, Impressions, Click-Through Rates (CTR), etc.
- By derived insights around what has changed for the ads to be not as effective, I was able to identify possible reasons for the lower conversion rate and provided recommendations on how to improve it.
- Additionally, I was able to identify patterns in relationship between Total Ad Spend and Customer Acquisition Cost
Key Takeaways
- It was found that the CAC was increasing and ROAS was decreasing, thus ad spend was not the only driver of lower conversions
- It was found that, on a per $ basis, reach and impressions on the ads were the same as earlier but few purchases were occurring in recent months
- The biggest recommendation to improve conversions was to understand customer perceptions of the product, improve messaging and increase ad spend to reduce CAC
Deliverable
Analysis report with detailed charts and executive summary describing the key findings, potential root causes and recommendations
Analyzing Trends in CAC
Identifying Root Cause of Lower Conversions
Identifying Patterns that Informed Actionable Insights
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