When managed effectively, Google Ads campaigns can significantly boost your online presence and drive business results.
However, even well-planned campaigns can experience unexpected performance drops.
This guide will help you understand why these drops occur, how to identify and address them quickly and implement strategies to prevent future issues.
The importance of monitoring PPC performance
Continuous monitoring of your PPC campaigns is not just a best practice, it’s a necessity. Here’s why:
Early problem detection: Regular monitoring allows you to catch issues before they escalate into major problems that could significantly impact your ROI.
Data-driven decision-making: By closely tracking performance metrics, you can make informed decisions about budget allocation, keyword targeting and ad copy optimization.
Competitive edge: The PPC landscape is highly competitive. Staying on top of your campaign’s performance helps you maintain an edge over competitors who might be targeting the same audience.
Budget efficiency: Monitoring helps ensure that your advertising budget is being spent effectively, maximizing your return on ad spend (ROAS).
Alignment with business goals: Regular performance checks allow you to ensure that your PPC efforts remain aligned with your overall business objectives.
Identifying the root causes of PPC performance drops
Understanding the potential causes of performance drops is the first step in addressing them. Here are some of the most common reasons:
Changes in competition: New competitors entering the market or existing ones changing their strategies can impact your ad’s visibility and effectiveness.
Seasonal fluctuations: Many industries experience seasonal changes in demand, which can affect PPC performance.
Ad fatigue: If your ads have been running for a while without changes, your audience may become less responsive to them (mostly on upper funnel formats or smaller audiences).
Budget constraints: If you hit your budget cap early in the day, you might miss out on valuable traffic.
Algorithm updates: Google frequently updates its algorithms, which can sometimes lead to unexpected changes in ad performance.
Website issues: Problems with your landing pages, such as slow load times or poor mobile optimization, can negatively impact your campaign’s performance.
Account changes: Accidentally adding broad negative keywords can significantly reduce your ad’s reach, as can upload errors, wrong-configured campaigns and targeting mistakes, which can be costly.
Market changes: Shifts in market trends, consumer behavior, or economic conditions can affect users’ interactions with your ads.
Tech issues: Changes in tracking setups or platform updates due to new privacy regulations etc., can significantly impact performance if not monitored.
By understanding these common issues and maintaining vigilant monitoring practices, you’ll be better equipped to quickly identify and address performance drops in your Google Ads campaigns.
Dig deeper: How to uncover the root cause of PPC performance changes
Identifying the issue
When faced with a drop in PPC performance, it’s crucial to pinpoint the root cause quickly.
This process involves analyzing key metrics and using what methods work best for you. Some might use third-party PPC tools, while others are quicker in the account interface or with exported data in a spreadsheet.
To streamline this process, we’ll introduce a metrics “tree” approach that helps you systematically drill down from top-level metrics to more specific ones, enabling you to understand and isolate the issue effectively.
The metrics tree approach
The metrics tree is a structured method of analysis that starts with broad performance indicators and progressively narrows down to more specific metrics. This approach helps you identify the source of the problem more efficiently.
Level 1: Top-level performance metrics
Overall conversions
Cost per acquisition (CPA)
Return on ad spend (ROAS)
Level 2: Traffic and conversion metrics
Click-through rate (CTR)
Conversion rate
Clicks
Impressions
Average cost per click (CPC)
Level 3: Granular performance metrics
Impression share (IS)
Quality score
Ad relevance
Landing page experience
Search lost IS (budget)
Search lost IS (rank)
Level 4: Specific element performance
Keyword performance
Ad copy performance
Device performance
Geographic performance
Audience segment performance
Identifying the right metrics may vary from business to business and account to account, but it’s an actionable and easy way to get started without looking cluelessly through dozens of campaigns.
Using the metrics tree
Here’s how to use this approach effectively:
Start at the top: Begin with Level 1 metrics. Identify which top-level metric has dropped.
Follow the branch: Based on the top-level metric affected, move to the relevant Level 2 metrics.
Drill down: Continue moving down the tree, following the path indicated by the metrics showing issues.
Isolate the problem: By the time you reach Level 4, you should have a clear idea of where the problem lies.
Let’s say you notice a drop in overall conversions (Level 1). You check Level 2 and see that CTR has remained stable, but the conversion rate has dropped.
Moving to Level 3, you find that the landing page experience score has decreased. At Level 4, you discover that the performance drop is particularly noticeable for mobile devices.
This systematic approach leads you to conclude that there might be an issue with the mobile version of your landing page, which is affecting your overall conversion rate.
Actionable insights from the metrics tree
Once you’ve identified the issue using the metrics tree, you can take targeted action:
Top-level issues: These may require broad strategy adjustments.
Traffic issues (CTR, impression share): Focus on ad copy, keywords or bidding strategies.
Conversion issues: Look at landing pages, offer relevance or user experience.
Cost issues: Examine bidding strategies, keyword choices or audience targeting.
By using this metrics tree approach, you can more efficiently diagnose performance issues in your PPC campaigns, allowing for quicker and more targeted solutions. Remember, the key is to start broad and progressively narrow your focus until you identify the specific area needing attention.
One of the more well-known third-party tools is Optmyzr, which has a function to create root cause tree charts. However, with some decent PPC knowledge, you can also create those charts for yourself that are more aligned with the client’s characteristics.
We’ll explore potential issues in three main areas:
The account itself.
The market conditions.
The client’s website.
Issues with the account
Account-level issues are often the most straightforward to identify and resolve. Here’s what to look for.
Key metrics to analyze
CTR: A sudden drop in CTR could indicate that your ads are becoming less relevant or appealing to your audience. But also that your ads are not placed that high anymore, which can refer to bidding and budget issues.
Conversion rate: If clicks are steady but conversions are down, your landing page or offer might be the issue.
Quality Score: A decrease in Quality Score can lead to higher costs and lower ad positions. (The quality score is usually a slower indicator, so take other metrics into account.)
Impression share: If this metric is dropping, you might be losing ground to competitors or facing budget constraints.
Using Google Ads’ diagnostic tools
Change history: Review recent changes made to the account that might have impacted performance.
Auction insights: Compare your performance against competitors to see if you’re losing market share.
Ad preview and diagnosis: Check if your ads are showing for your intended keywords and locations.
Issues with the market
Market conditions can significantly impact your PPC performance. Market conditions are trickier, so make sure to include non-account information as well. Here’s how to identify market-related issues.
Key metrics to analyze
Search volume trends: Use Google Trends to see if there’s a decrease in interest for your keywords.
Competitive metrics: Monitor average CPC and top-of-page bid estimates for increases in competition.
Geographic performance: Look for unusual changes in performance across different locations.
Using Google Ads’ diagnostic tools
Keyword planner: Check for seasonal trends or shifts in search volume for your key terms.
Audience insights: Analyze changes in audience behavior or demographics.
Performance planner: Use this tool to understand market trends and optimize your campaigns accordingly.
Additionally, you can check (Google) News or any other source you trust for market and industry reports.
Issues with the client’s website
Sometimes, the problem lies not with the PPC account or market but with the client’s website. Here’s how to identify these issues.
Key metrics to analyze
Bounce rate: A high bounce rate could indicate problems with the landing page relevance or user experience.
Page load time: Slow-loading pages can significantly impact conversion rates.
Mobile performance: Check if there’s a discrepancy in performance between desktop and mobile users.
GA4 funnel reports: Analyze the steps in which potential customers are leaving your store.
Tracking status: do you still receive conversions and conversion values?
Using Google Ads’ diagnostic tools
Landing page experience: Review Google’s assessment of your landing pages in the “Landing page experience” column.
Mobile-friendly test: Use Google’s Mobile-Friendly Test tool to ensure your site works well on mobile devices.
Additional tools
Google Analytics: For deeper insights into on-site user behavior.
Google PageSpeed Insights: To identify and fix page speed issues.
Website issues are often more complex since many shop software-specific issues might also arise.
Carts or checkout steps are not working, or an add to cart button is not functional. Other concerns, like tracking issues with specific payment methods, are also making it difficult to identify the issue quickly.
I suggest going through the customer journey on the client’s website at least twice to ensure you have clicked on every important button and finished the checkout.
By systematically examining these three areas – account, market and website – you can more effectively pinpoint the source of performance drops in your PPC campaigns.
This structured approach allows for a comprehensive diagnosis, enabling you to develop targeted solutions to get your campaigns back on track.
Dig deeper: What to do when performance tanks in PPC
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Client communication
Effective client communication becomes as crucial as the technical fixes themselves when faced with performance drops in PPC campaigns.
How you handle this communication can make the difference between a client who trusts your expertise and one who loses confidence in your abilities.
Here’s how to navigate this sensitive situation.
Promptly informing clients about performance issues
Speed is of the essence when it comes to communicating performance issues:
Be proactive: Don’t wait for the client to notice the drop in performance. Reach out as soon as you identify a significant issue.
Choose the right medium: For urgent and more critical matters, a phone call or video conference is often more appropriate than an email. But an email is also just fine to raise awareness for the topic itself following up with a call.
Prepare your data: Have your key metrics and initial analysis ready before you make contact. If the issue is more complex and requires more analysis, it’s also fine to contact your client without any data or findings, but make sure to communicate your next steps so your client knows you are working on it and can trust you to find the issue.
Explaining the situation in non-technical terms
I can’t stress this enough from personal experience. Not all clients are PPC experts.
It’s your job to translate complex issues into understandable language. Unless your contact is a PPC expert him/herself or at least in marketing, stay away from abbreviations and highly specific PPC terms.
Use analogies: Compare PPC concepts to familiar ideas from everyday life or the client’s industry.
Visual aids: Use charts or graphs to illustrate performance trends.
Focus on impact: Explain how the issue affects their business goals, not just the campaign metrics.
For example:
“Imagine your PPC campaign is like a store. Recently, we’ve noticed fewer people coming into the store (lower click-through rate) and of those who do come in, fewer are making purchases (lower conversion rate). We’re investigating why this is happening and how we can bring more customers back.”
Clients who have been running PPC campaigns for some time will sooner or later learn, understand and remember marketing or PPC metrics. But when in doubt, always refer to more simple terms so your client understands you directly.
Nothing is worse than email ping-pong when there is an urgent matter just because your client isn’t sure what you mean by CVR.
Presenting a clear action plan with timelines
Clients want to know you have a solution. Present a clear, structured plan:
Outline steps: Break down your action plan into clear, manageable steps.
Set timelines: Provide estimated time frames for each step and for seeing initial results.
Assign responsibilities: Clarify what you’ll be doing and what, if anything, you need from the client.
The last point is the most important because it isn’t just about what you can do as a PPC expert but also where you need support.
Whether it’s IT help, web development, backend access, or recent changes to the website, products, or pricing, make sure your client knows exactly what you need from them and what you will handle.
Setting realistic expectations for recovery
Managing client expectations is crucial to maintaining trust:
Be honest: Don’t promise immediate or dramatic turnarounds if they aren’t realistic.
Provide context: Explain that some strategies may take time to show results.
Set benchmarks: Establish clear, achievable milestones for recovery.
Prepare for setbacks: Explain that the recovery process might not be linear and could involve some trial and error.
For example:
“Based on our experience with similar situations, we expect to see initial improvements in click-through rates within the first week of implementing changes. However, significant improvements in conversion rates and overall campaign performance typically take 2-4 weeks to materialize. We’ll be monitoring closely and making adjustments as needed throughout this period.”
Remember, clear, honest and proactive communication is key to maintaining client trust during challenging periods.
By keeping your clients informed and involved in the recovery process, you not only address the immediate issue but also strengthen your long-term relationship.
Dig deeper: How to set and manage PPC expectations for teams and stakeholders
Preventive measures
While knowing how to recover from performance drops is crucial, implementing preventive measures can help you avoid many issues before they occur. By being proactive, you can maintain more stable and successful PPC campaigns.
Automated alerts serve as early warning systems, helping you catch and fix issues quickly. Common metrics for alerts include CTR, conversion rate, CPC, impression share, budget depletion, ROAS and CPA.
You can set up these alerts in various ways.
Use Google Ads automated rules
Go to Tools & Settings > Bulk Actions > Rules
Create rules for each key metric, setting thresholds for acceptable performance.
Example: “Alert me if CTR drops below 2% for any campaign.”
Leverage third-party tools
Get more advanced alerting capabilities.
These can often integrate multiple data sources for more comprehensive monitoring.
Ads scripts
Set up Google Ads scripts to notify you when metrics change.
While scripts are a little more complex to build and set up, they offer much more complexity and conditional logic with alerts than the other options.
It’s recommended that you start with conservative thresholds and adjust as you learn what’s normal for your account because you don’t want email spam with those alerts.
Also, include alerts for positive changes, too. Sudden improvements might indicate opportunities to scale.
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