Why Your Performance Max + Meta Ads Are Not Working

John: 00:00:11

So what the Facebook in app shows is, wow, we spent 81 percent

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less and made 41 percent more

revenue for the lack of top line.

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Yeah.

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So this is going to be a slow death

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What other marketing does he run facebook?

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yeah, and asked for access to his

facebook so that Pleasant and I can

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look at What they're doing because

he said in the meeting I had with him

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that they've switched from outbound to

mostly remarketing in their facebook

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So we wanted to go in there and double

check he's only running PMAX in there.

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So we've talked about relaunching standard

shopping and seeing what, but pending

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what they're doing in Facebook, cause

we want to actually see it for ourselves

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and not just take his word for it.

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not only did he switch heavily

to remarketing, he also,

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it looks like pulled back.

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This 30 days compared to previous 30 days.

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So there's an overall drop of

24%, which I would imagine, did

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that sometime around March 20th.

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Yes.

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we met the end of April,

for the first time.

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And he had mentioned recently

switching over the PMAX.

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So there's a 40 percent loss in traffic

and 81 percent drop in sessions by social.

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let's just say he had

a UTM whoopsie daisy.

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that would mean that direct

would go up and it's not.

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So it's definitely a pullback.

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which pullback search, pullback,

direct pullback, direct sales.

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now search is up here, but the reason

why Facebook has now attributed is

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they did go probably towards more

remarketing, so what the Facebook in

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app shows is, wow, we spent 81 percent

less and may 41 percent more revenue.

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For the lack of top line.

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So this is going to be a slow death,

but the bad part is now it's going to be

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solely up to Google to bring in the new

traffic, which we're using a platform.

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That's just going to try

to hover at that point.

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this is also reducing

sales here that we can see.

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So there needs to be a

prospecting source somewhere.

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and I think that the prospecting source.

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my opinion would be I would be going

after the angle of election season and

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instability in the socioeconomic climates.

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that would be my recommendation.

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How's the pricing competitively?

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from what I understand, it's, fairly

competitive not like the cheapest,

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So they sell Dura Steel is the brand

they just started putting on Amazon.

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Apparently.

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But I couldn't find anything with

their company brand, within Amazon,

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but he said they're on there.

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I'm hoping to clear that up with him.

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Gotcha.

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Gotcha.

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Gotcha.

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So water distiller, distill water

machine, classic distiller, distill.

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So I think one of the reasons why

we're seeing a stability is obviously

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it's a lot of good cold traffic.

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No, one's really looking

for the brand name.

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but right here, best hit

the fan water filter.

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This is that pepper thing right there.

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this is definitely gonna be

a prepper type of mantra.

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I would share this with them.

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Just say, hey, by the way,

with remarketing pulling back,

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we're having obviously a lot

of good success with Google.

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Now, our cold traffic in Google is good.

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That's why, with a 40 percent

reduction in Google Meta traffic are

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orders didn't decrease, but there is

a increase in return customer rate.

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So this could be a false positive for

the short term until that atrophies

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because returning customers can

only buy so many water filters.

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so the data is already starting to support

our theory about what's going to happen.

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Yeah, so if we look at new customers,

since March 21st, this is when

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they switched to remarketing.

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February 4th, March 20th.

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Okay.

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is what we get to compare that to.

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So 1.

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they lost 26 new customers.

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between them turning off meta and going

to remarketing, but since they lost 33

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new customers, it was falsely added up to.

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now we have a few

existing return customers.

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And it looks like only just recently here.

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I think that's one of the

reasons why since the 28th, we're

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probably having some good success.

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Yeah.

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There's your success here.

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Success here.

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81 percent more orders, but that came

from all the returning customers.

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it could have been a restock.

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It looks like they're using a lot

of in app ROAS to be like, yeah,

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we're successful, but they're

missing the forest for the trees, but

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they really are stuck on the ROAS.

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Yeah.

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Yeah.

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That sounds about right.

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That's why this thing's all flip floppy.

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I would draw them a bigger picture.

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Say if we take a step back and we don't

take any sort of in app platform metrics

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and distill what's going on here.

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they'll like that joke.

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Then we look at the loss of their

cold traffic has done, a small

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number, in decline of new customers.

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It's been recently made up

with existing customers.

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But those existing customers will

become less valuable over time because

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they're going to be doing replacement

filters, which is also why they probably

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saw a spike up in return customer

rate and the drop of their AOV by 38%.

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and those are gonna be like, gasket set

parts, and plastic lids, and a switch.

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So they're a couple of takeaways

is losing core product,

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sales, new customers are down.

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33 from the switch to remarketing.

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What does Google say

in the last seven days?

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I would imagine that's probably

showing some, Dura still distiller

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parts that might be coming from

their existing customers or people.

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People have purchased from them before

that forgot about water distillers.

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com because that is a very generic

name and not only resellers are

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not investing in their brand.

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so that makes a lot of sense,

especially if jurors still

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went out of stock somewhere.

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This is like woohoo free existing

customers that probably didn't

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buy from us before they had a

backlog issue several months ago.

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They ordered well in advance

because they had been having

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procurement issues for a while.

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Makes sense.

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It's cool when you come

and take a step back.

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And once you start, looking at these

things, I would say, in app ROAS on meta

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is most likely up 100 percent or more.

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that'd be a good question.

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In app ROAS is most likely

100 percent or more.

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Yes.

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But that's also because we're

No hemorrhaging our own clients.

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return customer rate is up 30 percent

which is offsetting the top line

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metrics to a, slightly down trend.

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But our future business is at risk.

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if you're measuring business

performance year over year.

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This is down 30%, down 50% down

30% down 13% because that's up 42%.

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so this is what's interesting

is this here is floating.

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That these here are all metrics.

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So these are your correlating metrics.

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Your return customer rates up

'cause they're buying refillables.

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And because of your own customers

it's up because, they, they trust you.

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But our top line is we're going to

see a slow decay and that's why year

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over year, this will say, we need

a cold traffic, channel to push.

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Now performance max can probably do that.

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it may not, It's a full build.

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It's a Okay.

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What is enabled?

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Standard chopping is not

really the answer here.

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it could be because they're going to be

doing a lot of remarketing on meta, but

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I think that their meta was actually

performing better than what they saw.

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They were just judging it wrong.

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actually let me do that

and do this theoretic.

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so if we did January to the 19th year

over year, What was going on between

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October, 2023 and December, 2023.

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Do you remember?

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Oh, I don't know.

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I just took over and I don't believe

we touched on that during the meeting.

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it might have been the stock issues

that, that was a kind of a pervasive

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issue for them for a little bit.

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but yeah, from a marketing standpoint,

I know they've been reducing their

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budget gradually from, I think

they were at 8, 000 and they've

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been trickling down to 3, 500.

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so that might be a factor.

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Yeah, it looks like when everything

was being pushed, especially on

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Facebook, Your direct is going to go up.

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Your social is going to go up.

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So your search is going to

go up, just not as much.

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Cause it's going to be the return brand.

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but this is year over year, fourth

quarter, 23 to fourth quarter, 22.

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Now, fourth quarter is going to be always

like, the land of milk and honey, Oh,

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that's a burkey ver like, competitor.

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I would definitely push less

hard into metal remarketing.

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That was too big of a shift.

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. Your in-app.

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Rowa is gonna look amazing

until you're out of business.

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so that'd be the first thing to say is,

Hey, trying to do good by your business.

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This is not something that is sustainable.

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Half the traffic is not sustainable.

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I would say, and then make the

mention that the mix between meta

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and performance max is performance.

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Max is going to remarket heavy and if

metas remarketing heavy remarketing

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is always going to have a better row

as just like brand, it always will

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just at very much lower volumes.

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it's almost a fact of do you

want high profitability or do

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you want, scale or a mix of both?

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If you want high profitability,

then just hang tight here.

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if you want profitability and scale, we

need to start pushing more cold traffic.

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The sources that the source as to which

I would recommend would be in meta

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just because it's an election year.

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And this is where we're going to

start to see more prepper mentality

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closer and closer to the election.

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There's also Trump is on trial.

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he is of the base.

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I would say that this is

probably going to mostly with.

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And the results of those trials could

cause potential for the theoretical,

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socioeconomic or not socioeconomic,

but just the social climates really.

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so I think he may be missing a mark on

capitalizing his base, during probably one

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of the most important times of the year.

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Yeah.

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so even if we just don't put all back

into where, into there, but I would say

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that's, that would be the angle I would

begin to test and then watch top line.

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there's, you can see extreme correlations

between their shifts and what they've

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been making now, what in a bro as

potentially would look like, but what's

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actually going on in this business.

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What I really want to do is, yeah, I

really wanted to get us that access to

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facebook so we can take a look and then,

hopefully softly convince him to let

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us take over as meta so we can do this.

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All together in house instead of trying

to fight with his meta people and

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fight with him and, that's the goal.

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the thing I would say is, hey, if

you're going to do all remarketing,

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why don't we just do all brand?

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You're going to have, TEDx's

across the board easy.

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Now, no one ever find you again, but all

of that returning customer every day,

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we're going to go down to the 30 percent

of people that are left, which is fine

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because apparently Google can go down only

to 50 percent of the people that are left.

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So why don't we just make the full shift

in there and just, ride out that high

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amount of volume until, we part ways.

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would honestly ask him that, just

say, Hey, not to be exaggerated,

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but if we're 50 percent of the

meta traffic, why don't we cut out,

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50 percent of the Google traffic?

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we're going to be down a hundred

percent year over year, but

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it'd be extremely profitable.

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No, I don't want to do that.

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we've already made one of those changes.

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So I'm asking, I'm curious

as to why that's okay.

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We were halfway there.

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So all it is to be said is when

you poise those questions, you want

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to get them thinking differently.

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Looking at Navarro, I'd be like, crap,

we can do the same thing on Google.

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All I have to do is just go after your

brand name and then boom, amazing results.

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Yeah, we're already 50

percent of the way there.

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If we go a hundred percent of the way.

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Yeah, you cut out 77 percent of your

traffic and make, 50 percent of the sales.

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Great.

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that's pretty cool.

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Look at that.

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You look at how much profit there minus

77 minus 53, that 20 percent right

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there is just pure cash in the bank.

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Why would we do that again?

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I don't want to do that.

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so why don't we think about how

to slowly push rather than just,

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cut off one leg in a marathon.

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Yeah, lots of work.

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Thanks, John.

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You got it.