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April 30, 2024 - By Barron Rosborough

Hawke AI Insights – April 2024

Overall Insights

In February and March of 2024, we noticed some important changes in our advertising data that business leaders should be aware of. Let’s break down what happened and what it means for your strategy:

  1. Ad Clicks Decreased: In March, the number of people who clicked on our ads was a lot lower than in February—down by 27.3%. This might mean that we changed our advertising approach or that people weren’t as interested in what we were advertising.
  2. Lower Conversion Rate: Even though fewer people clicked on our ads, the percentage of those clicks that turned into actual customers also dropped from 5.38% in February to 4.65% in March. This drop of 13.6% could suggest that our ads weren’t hitting the mark as effectively, or maybe we were attracting people who were just browsing rather than ready to buy.
  3. Conversion Value Dropped: The total money made from these conversions fell by 29.4%, which is a big deal. It means that even though we were still making sales, they were either less frequent or for cheaper products.
  4. Ad Costs Went Up: Interestingly, while our clicks and conversion value went down, we actually spent more on ads in March than in February—about 7.1% more. This isn’t great because it means we were paying more but getting less in return.
  5. Cost Per Click Improved: On the plus side, the cost for each click on our ads went down by 10.7%. This could be because there was less competition for the keywords we were targeting or maybe we improved our ad bidding strategy.
  6. Cost Per Lead Increased: The cost for each potential customer lead went up by 7.9%, which isn’t ideal. It shows us that our ads are becoming less efficient, costing us more for each lead we get.

What should business leaders take from this? Here are a few tips:

  • Review Your Ads: Look at what changed between February and March. Why are fewer people clicking? Why are the clicks less valuable? This could be a time to try new ad strategies or revisit the ones that worked in the past.
  • Check Your Spending: With costs going up and returns going down, it’s crucial to look at where every dollar is going. Maybe it’s time to cut back on some ad campaigns or shift your budget to more effective strategies.
  • Keep An Eye On The Market: Changes in our ad performance could also be due to changes in the market. Stay updated on trends and adjust your tactics accordingly.
  • Monitor Regularly: What happened between February and March shows why it’s so important to keep a close eye on your advertising data. Regular checks can help you spot trends before they become problems.

By staying alert and ready to adapt, you can make sure your advertising efforts are as successful as possible, even when the data shows you’re facing challenges.

B2B Insights

  • Increase in AdWords Clicks: AdWords clicks rose by 37.6%, indicating higher engagement with B2B campaigns in March compared to February.
  • Decrease in Conversion Rate: Despite more clicks, the conversion rate dropped by 13.6%, suggesting that the increased traffic might not have been as qualified.
  • Decrease in Conversion Value: The conversion value fell significantly by 29.4%, aligning with the broader trend of decreased conversion effectiveness.
  • Lower Ad Costs: Ad costs decreased by 19.3%, which, combined with fewer conversions, may suggest a need to evaluate the impact and ROI of current campaigns.

B2C Insights

  • Decrease in Clicks: Clicks dropped by about 10.9%, indicating a potential decrease in consumer interest or effectiveness of the ads.
  • Minor Decrease in Conversion Rate: A slight decrease in the conversion rate by 2.8% could point to lesser engagement or changing consumer behavior.
  • Significant Drop in Conversion Value: A drastic 79.4% drop in conversion value suggests a major shift in consumer spending or the success of the campaigns.
  • Increase in Ad Costs: An increase in ad costs by 6.5% despite falling clicks and conversion rates calls for a review of spending efficiency.

E-Commerce Insights

  • Slight Increase in Clicks: A modest increase in clicks by 1.6% indicates stable traffic but with room for improvement.
  • Slight Decrease in Conversion Rate: The conversion rate fell slightly by 2.3%, suggesting a small decrease in the effectiveness of campaigns.
  • Significant Increase in Conversion Value: A large increase in conversion value by 33.9% is a positive indicator of high spending per conversion or successful upselling strategies.
  • Decrease in Ad Costs: A 10.8% decrease in ad costs with an increase in conversion value is an excellent sign of improved ad spend efficiency.

Strategic Recommendations for E-Commerce Leaders:

  • Enhance User Engagement: Focus on strategies that could increase user engagement to leverage the slight increase in clicks effectively.
  • Improve Conversion Tactics: With a slight decrease in conversion rate, revisiting the conversion tactics could help in turning more browsers into buyers.
  • Maintain Cost Efficiency: Continue to monitor and optimize ad spending to maintain the cost efficiency observed in this period.

By understanding these insights, business leaders across all sectors can better strategize their marketing efforts to align with current market trends, consumer behavior, and overall business objectives.