May Ad Review: Advanced Insights for Facebook + Instagram Ads & Google Ads!

Insights by Sam Sprague, Founder of Sprague Media leveraging Varos’ platform & data.

‍Let's dive deep into the data and uncover advanced strategies for the month ahead! 

‍💻 Facebook Ads: Stable Performance with Opportunities for Improvement

‍In May, our data shows a slight but promising improvement in Facebook ads performance compared to April. 

As a whole, we’re seeing a slight decrease in Cost per Purchase (CPP -4%) and an increased Return on Ad Spend (ROAS +2%). Although changes are modest, they still reflect a positive trajectory.

✔ ️ We’re also seeing the average account (median) increase spend by +5.3%, with the highest spending accounts increasing spend by +2%, showing marginal changes. Which also reflects stable performance month-over-month (yes, we love stability!).

Interestingly 🕵️, in the trailing twelve months (TTM) view, we see that the lowest performing CPP accounts have been able to decrease CPP by -21%. As well as, the lowest performing ROAS accounts have increased their ROAS by +24%, indicating a massively improving trend.

As a whole, the average account has seen a dramatic drop in CPP of -16% TTM and ROAS following suit +20% TTM. This underlines sustained growth over time, which is a testament to successful strategies in play.

🔑 The key takeaway here is that there’s room for growth, especially with CPM’s declining by -15% TTM.

With the right strategies, we need to remember that in media buying, consistency is a must. Stay the course, keep riding the wave, and optimizing for further improvement.

A rising tide raises all ships!

💡 Google Ads: ‘Iffy’ PMAX Performance

‍Google Ads, on the other hand, displayed more pronounced deterioration in May. Performance, as a whole, saw increases to CPP of +5% and decreases in ROAS of -3%.

That said, sometimes we have to dig a bit deeper into the channels to strike gold… 

PMAX performance showed stability with a decrease of -2% in CPP and a drop in spend of -6%, month-over-month.

This same trend also followed Search performance into May as well.

Lucky for us, Google Shopping is here ftw.

‍🔍 Google Shopping Campaigns Shine

‍May’s Google Shopping campaigns saw a significant decline in CPP of -15% and a jump in ROAS of +14%, compared to April.

This Channel is one of the key ‘breadwinners’ for eComm brands on Google.

The slight decrease in Spend of -2.2%, is indicative of decreased competition levels. Making it all that much sweeter of an opportunity for you to pounce on!

But strike while the iron is hot, as they’re becoming a popular strategy amongst your competition.

‍🧐 What Does This All Mean?

‍In layman's terms, the data suggests that marketers are finding consistent value in both Facebook and Google's ad platforms.

‍How does one access the stability all marketers are chasing?

‍Stability across various campaign types and channels requires just two (2) simple things from you, to include:

1. 🎯 Targeting Type – Facebook Retargeting: Retargeting has taken quite a blow since the iOS-14 update, with a decline in Ad Spend of -28% TTM (-0.15% MoM). However, this is also where we see the biggest opportunity for Facebook Ads – with a +18% ROAS TTM (+1.5% MoM) Retargeting Audiences are being completely underserved.
2. 🛍️ Channels – Google Shopping: These campaigns are the backbone of your marketing campaigns. When we see a drop in CPP of -15% MoM and an uptick in ROAS of +14% MoM, all while ad spend hovers around +2% MoM, this screams opportunity!

Implementing a structured system for budget allocations for both FB Retargeting and Google Shopping, believe it or not, will put you ahead of the curve. 🎢

‍📝 TL;DR – Advanced Strategies to Execute in June

1. Leverage Retargeting Campaigns: Reinforce your brand message, focus on product-first, and stay top-of-mind with your potential customers by setting a structured system for budget allocation on Facebook retargeting.
2. Optimize Your Shopping Campaigns: Given the strong performance of Google Shopping campaigns in May, it's crucial to optimize these to stay competitive.
3. Introduce Product Catalog Campaigns: Catalog campaigns, especially when utilizing Advantage+, are extremely beneficial. Since we’re seeing a (-19% MoM) decline in ad spend on Catalog Campaigns, now is a great time to try. 
4. Open Your FB & IG Shops: Given the decline in ad spend on Product Catalog campaigns, there is an opportunity to exploit this gap. Use this channel to showcase your products and drive sales. 
5. Monitor Your Metrics: Keep track of your metrics, especially CPM, as spikes can indicate increased competition. Use these insights to adjust your strategies as needed.

‍📘 Final Thoughts

‍A couple of things to keep an eye on this month:

1. June tends to be an extension of May. So now is the time to test, test, and test some more. Prep your base for Q3. ✍️
2. ‍Keep track of CPM’s in the ladder part of June. Spikes in CPM correlate to a spike in competition (i.e., more ad spend), which happens at the end of every quarter – as the bigger brands like to make sure they’ve unloaded their budgets before the end of every quarter. 

Stability is what you’re looking for. Whether you knew it or not, it’s what we all strive for.

Don’t overthink it… Let the data Varos has accumulated guide you to the right decisions. 

And make sure to stay subscribed as we continue with our monthly Newsletters.

Here's to a successful June, Cheers!

Insights by Sam Sprague, Founder of Sprague Media leveraging Varos’ platform & data.