1/28/2025

Timing & Structure: How to Determine When to Kill an Underperforming Ad

Ads can sometimes feel like little children: you love them, you nurture them, but sometimes, they just don’t grow up to be who you wanted. So, how do you know when to let go of a not-so-stellar performer?

Understanding Ad Performance Metrics

First things first, let’s talk metrics. These snippets of wisdom are your guiding stars when it comes to evaluating whether your ad is doing cartwheels in front of your customers or just standing in the corner looking awkward. If you're not already tracking metrics like click-through rates (CTR), conversion rates, and cost per acquisition (CPA), you're flying blind!

1. Click-Through Rate (CTR)

The average click-through rate is a key metric you should track. If your CTR is way below the industry average, it's a RED FLAG. Low CTR often means your audience isn't clicking on your ad—not a good sign! A solid benchmark for search ads is around 3.17% while display ads hover around 0.46%. If you're facing significantly lower numbers, it may be time to reevaluate your messaging.

2. Conversion Rate

Next up, how many people who actually clicked the ad went on to perform your desired action? This could be anything from signing up for a newsletter to buying something off your website. Tim explains here just how essential conversion rates are for the health of your campaigns. If your conversion rates aren't making you smile, it's time to ask some serious questions!

3. Cost Per Acquisition (CPA)

Now let’s chat about cost per acquisition. If you’re spending $100 on ads and only getting one sale that brings in $50, congratulations, you've successfully reported a loss! A CPA ratio of 5:1 is what you’re aiming for. If your CPA is eating away more than it should, it’s high time to reconsider your ad strategy.

The Timing: Is It Time to Say Goodbye?

1. Set Performance Benchmarks

Here’s the kicker: every campaign has its own unique rhythm. When launching ads, ensure you establish performance benchmarks. Let’s say you assign your ad a run time of 2-4 weeks. If, by 3 weeks, your ad isn’t hitting predetermined metrics, WARNING LIGHTS should start flashing. The longer you keep an ineffective ad running, the more you burn through your budget with little in return.

2. Regular Check-ins

Don’t just set your benchmarks & then walk away sipping on an iced latte. Regularly check in on your ad’s progress! Weekly reviews can help you identify early underperformance signals. If it’s halfway through your campaign & your ad hasn’t even hit a quarter of its goal, it may time to pack it up. Regular monitoring means you can act fast, often saving budget in the process.

3. Consider External Factors

Factors outside of your control can influence ad performance. Are there seasonal trends, economic changes, or brand crises impacting your audience's buying behavior? Understanding these external influences allows you to contextualize poor performance. If everything’s hitting the fan in your niche, maybe you can afford to give your ad a bit more time.

The Structure: How to Execute Properly

When you’ve come to the decision that KILLING your underperforming ad is what needs to be done, proper structure can go a long way.

1. Analyze & Understand Why

Before yanking the cord, take a beat to analyze what went wrong. Was it the copy, the imagery, or the targeting? LayerFive’s metrics can guide your understanding. Gather feedback from your team, consult data, or even make use of conversational AI to gain insights. Ask yourself: “What else could I have tried?”

2. Replace Responsibly

When you're ready to cut an ad, don’t just toss it away without a plan. Replace it with something stronger! Create a new plan of action involving a new idea, different audience segmentation or a different ad format altogether. Arsturn can be an excellent tool here by helping you create custom AI chatbot solutions to re-engage your audience & test new concepts aiding in the ad creation process.

3. Document Everything

Last but not least, DOCUMENT your learnings! Maintain a record of the ads you’ve killed & why. Over time, a pattern will emerge, and you can learn what NOT to do in the future. Plus, historical data can guide your decision-making as you move forward.

In Conclusion

Finding the right timing & a solid structure for killing an underperforming ad is essential in ensuring your marketing budget is wisely spent. Plan your metrics, conduct regular check-ins, and always keep an eye out for external factors. If an ad isn't contributing positively to your goals, don’t be afraid to make the tough call. Remember, it’s all about creativity, data-drivenness, & foresight.

So there you have it, a roadmap for determining when it's time to say goodbye to that ad that just didn’t perform as expected. With the right tools, like Arsturn, you can reinvent your ad strategies, ensuring you engage audiences effectively while building meaningful connections. Keep optimizing & keep creating, friends!