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Thu Nov 07 2024

5 Reasons Why Your Paid Ads Are Failing

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Running paid ads can be a game-changer for businesses, driving traffic, boosting visibility, and ultimately increasing sales. But what if your ads aren’t delivering the results you expected? You’re not alone—many businesses invest heavily in paid advertising but fail to see a strong return on investment. If you’re scratching your head wondering why your ads aren’t working, it’s time to take a closer look at the key reasons campaigns fall short. From targeting mishaps to weak ad copy, here are the five biggest pitfalls that might be costing you results—and how you can avoid them.

If your campaigns aren’t delivering, it’s time to uncover the reasons why. We’ve compiled the top mistakes businesses make with paid ads and, more importantly, how to fix them. Don’t let these common missteps drain your budget and explore how you can improve your paid ads performance today. 

1. Poorly Optimised Landing Page

It’s not enough for an ad to get clicks – it needs to convert. If your ad copy promises one thing, but your landing page fails to deliver, you’ll lose conversions and burn through your budget with little to show for it. A disconnect between ad messaging and landing page content creates friction for the user, often leading them to exit before completing any desired action.

Even small UX issues can cause potential customers to leave your page without converting, increasing your cost per click (CPC) and lowering the return on investment (ROI) of your ad spend. To avoid this, make sure your landing page consistently aligns with the message in your ad. For instance, if your ad promotes a discount, ensure the offer is prominently displayed and easy to access on the page.

Improve the UX on your landing page by:

  • Ensuring your message is consistent with the traffic source
  • Having a single, focused goal (no distractions or multiple CTAs)
  • Using clear, concise language
  • Using legible fonts with sufficient size and contrast
  • Ensuring adequate spacing for readability
  • Limiting scroll depth
  • Optimising page load speed 
  • Ensuring mobile responsiveness

These enhancements will create a smoother, more intuitive user experience, ultimately improving conversions and maximising your ROI.

2. Underutilising First-Party Data in Campaigns

As third-party cookies phase out and privacy regulations tighten, relying on platform-driven targeting can hurt long-term ad performance. Advertisers should start pivoting towards the strategic use of first-party data. This includes customer emails, site behaviours, and CRM data, all of which can be goldmines for segmentation, retargeting, and building lookalike audiences.

By leveraging this data, you provide algorithms with more personalised insights, enhancing ad targeting and driving results that are more closely aligned with your business objectives.

You can do this by using Customer Match in Google Ads or Custom Audiences in Facebook Ads to build campaigns. For instance, segment your highest lifetime value customers into a specific audience, and use that to create a high-value lookalike audience. This approach ensures that your budget is going toward users most likely to convert at a higher value, as opposed to low-quality, broader targeting methods. Additionally, employ privacy-compliant tools like Facebook Conversions API (CAPI) to better track and measure the effectiveness of your campaigns post-iOS14 privacy updates.

3. Ad Fatigue

When it comes to Meta Ads, ad fatigue can be a challenge due to the frequency with which users are exposed to ads while scrolling through Facebook, Instagram, and other Meta platforms. This is particularly relevant for small businesses, as they sometimes prioritise visually appealing ads instead of what converts, and may not provide enough variety of creatives to discover what resonates most with their audience.

By rotating creatives more frequently and experimenting with new formats, such as video, carousel, or interactive ads, businesses can maintain audience engagement and reduce the risk of oversaturation. For instance, by using Meta’s frequency caps, you can control how often an individual user sees your ads, ensuring that you’re not overwhelming them. In parallel, adjusting your targeting can help extend the longevity of your campaigns, reaching new audiences before ad fatigue sets in with your existing ones.

Moreover, it’s crucial to prioritise performance metrics over visual appeal. While beautifully designed ads can catch the eye, they don’t necessarily convert. Focusing on key metrics such as CTR, conversion rate, and return on ad spend (ROAS) will provide a more accurate measure of how well an ad is performing.

4. Incomplete or Incorrect Tracking Setup

A well-optimised landing page means nothing if you can’t track its performance accurately. Without proper tracking in place, you’ll be flying blind, unable to understand which ads and campaigns are driving conversions and which need adjustments. An incomplete or incorrect tracking setup can lead to misleading data, making it difficult to assess your true ROI or identify bottlenecks in the user journey.

Avoid this mistake by:

  • Ensuring proper setup of analytics tools: Set up your GA4, GTM or conversion tracking pixels correctly across your entire site and landing pages.
  • Tracking all relevant conversions: Configure events such as form submissions, button clicks, and purchases to ensure you’re capturing key user interactions.
  • Regularly auditing your tracking setup: Periodically check to ensure no broken tags or scripts are causing gaps in data collection.
  • Using UTM parameters for ad tracking: This allows you to monitor the exact source of traffic and understand which campaigns are most effective.
  • Integrating with CRM systems: Track conversions beyond the landing page by connecting your CRM to measure lead quality and progression through the sales funnel.
  • Performing quarterly checks: Make sure your tracking is up-to-date and you have the latest settings for attribution 

5. Misaligned Ad Targeting

Even with great ad creatives and landing pages, your campaigns will fail if you’re not reaching the right audience. Misaligned targeting can result in wasted ad spend on clicks from users who aren’t likely to convert, leading to a poor return on investment (ROI).

To avoid this, it’s important to regularly assess and refine your targeting strategies. Are you focusing on broad demographics without considering buyer intent? Or are you relying too heavily on automated targeting options that lack the nuance needed for your specific goals? Start by analysing your existing customer data and build more precise audience segments based on behaviour, demographics, and interests.

Use Google Ads Audience Segments or Facebook Ads Custom Audiences to target specific user groups that align with your product or service. Additionally, use lookalike audiences to expand your reach while maintaining relevance. Regularly review your targeting parameters and tweak them to avoid reaching users who aren’t likely to engage or convert.

By honing in on the right audience, you’ll run more effective campaigns, lower your cost per acquisition (CPA), and achieve better business results with more meaningful traffic.

Summary

If your paid ads aren’t delivering the returns you expect, addressing common issues like landing page optimisation, targeting, and tracking can make all the difference. By focusing on the right strategies and fine-tuning your approach, you can boost performance and see real results.

This is the approach we take at Arcadian Digital, where we tailor paid ad campaigns to meet your specific goals and drive meaningful business growth. Reach out today to find out how we can help your ads perform better and deliver the results you’re looking for.

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We’d love to hear about your digital requirements. Even if you don’t quite know what you need, get in touch as we can help formulate a whole digital strategy to meet your business objectives.

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03 9090 7070

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