DTC Podcast Episode 458: Avoid These Costly Google Ads Mistakes this Black Friday | AKNF

Release Date: November 22, 2024

In Episode 458 of the DTC Podcast, host Eric Dick engages in an insightful conversation with Dougie from Pilothouse's Google Ads team. The discussion centers around optimizing Google Ads strategies for the high-stakes Black Friday Cyber Monday (BFCM) period, highlighting common pitfalls and providing actionable recommendations to maximize campaign effectiveness.

1. Understanding the Nature of Google Ads During BFCM

Dougie opens the conversation by emphasizing the distinct challenges of managing Google Ads compared to social platforms. Unlike social media, Google Ads operates on a slower data adjustment cycle, making real-time optimization more challenging, especially during peak sales periods like BFCM.

Dougie [00:00]: "There are some pitfalls I see a lot of brands encountering on the Google front, specifically due to the nature of Google comparative to socials being a much slower platform to adjust."

He warns that during BFCM, advertisers may find themselves three or more hours behind in data processing, which can hinder timely decision-making.

2. Budget and Bid Management Strategies

A significant portion of the discussion revolves around effective budget and bid management. Dougie explains that setting a daily budget on Google Ads allows the platform to potentially double the spend on individual days without exceeding the average over a 30-day period.

Dougie [04:47]: "If a campaign does spend in one singular day more than double the budget, you won't be charged for anything over double the budget. But if you ran $100 a day campaign and it spent $200, you'd be on the hook for that $200."

He advises advertisers to raise their Cost Per Acquisition (CPA) targets early in the promotional period and quickly reduce them once the promotion concludes. This flexibility ensures that campaigns can capitalize on increased consumer intent without overspending.

3. Preparing for the BFCM Surge

Dougie outlines a proactive approach to preparing Google Ads for BFCM. Given Google's reliance on a 30-day look-back window, he stresses the importance of loosening CPA and Return on Ad Spend (ROAS) targets at least one to two weeks in advance. This gradual adjustment allows Google’s algorithms to adapt to the heightened demand without abrupt changes that could destabilize campaign performance.

Dougie [07:24]: "Start loosening things up early a week, two weeks in advance. You don't have to be super aggressive with incremental change, but generally want people to get that in their minds that you've got to start before Black Friday hits."

4. Aligning Creative and Messaging

During the core BFCM period, Dougie recommends aligning ad creatives and messaging with promotional activities. One effective tactic is employing strike-through pricing on Product Detail Pages (PDPs) instead of relying solely on discount codes. This approach not only enhances the visual appeal of shopping listings but also clearly communicates the savings to potential customers.

Dougie [08:24]: "I tend to see stronger performance from strike through pricing on PDPs as opposed to providing automatic codes and the like."

5. Avoiding Last-Minute Campaign Changes

A critical warning from Dougie is against making significant changes to campaigns during BFCM. Due to Google's slower adjustment mechanisms, launching new campaigns or implementing major tweaks during the sale can lead to inefficient performance and missed opportunities.

Dougie [09:30]: "You don't want to make any huge sweeping changes to the account during that core period, which goes against maybe what you would consider being the best practice on Meta."

He emphasizes that all major adjustments should be handled well before BFCM to ensure stability and optimal performance during the sale.

6. Leveraging Third-Party Tools for Real-Time Data

Given the latency in Google Ads data reporting, Dougie advises using third-party tools and cross-referencing multiple data sources to gain real-time insights. Tools like Universal Analytics (though he prefers GA4 less during BFCM) and Shopify’s bottom-line metrics can provide quicker indicators of campaign performance.

Dougie [14:12]: "Cross referencing J4 and just actually looking at the bottom line in Shopify... Third party attribution can help out a little bit there."

He suggests that integrating these tools can help advertisers make more informed decisions swiftly, mitigating the delays inherent in Google’s data processing.

7. Post-Promotion Campaign Adjustments

After BFCM, Dougie highlights the importance of immediately adjusting CPA and ROAS targets to prevent overspending during periods of reduced consumer demand. Failure to rein in these settings can lead to excessive budget allocation even after the promotional period ends, resulting in inefficient ad spend.

Dougie [15:52]: "If we don't make any changes through Black Friday Cyber Monday or afterwards, you're going to not ramp up fast enough for Black Friday Cyber Monday... Google’s still going to try and inflate your spend."

He recommends swiftly lowering targets and budgets post-promotion to align with the decreased demand and avoid unnecessary expenditures.

8. Outlook and Final Recommendations for 2024

Dougie expresses optimism for the 2024 BFCM period based on strong pre-sale performance indicators. He believes that with proper preparation and strategic adjustments, brands can surpass the successes of previous years.

Dougie [19:31]: "Black Friday Cyber Monday is going to be bigger than last year just given the comparison from October."

He concludes by reiterating the necessity of preemptive strategy adjustments and continuous monitoring to navigate the complexities of Google Ads during high-traffic sales events effectively.

Key Takeaways

• Advance Budget Planning: Understand Google's flexible budget spending and adjust CPA/ROAS targets ahead of BFCM.

• Prepare Creatives Early: Align ad messaging and use strike-through pricing to enhance visual appeal and clarity.

• Avoid Mid-Sale Changes: Implement all major campaign adjustments before BFCM to ensure stability.

• Utilize Third-Party Tools: Leverage additional analytics platforms for real-time performance insights.

• Post-Sale Adjustments: Quickly refine targets and budgets after BFCM to prevent overspending.

By adhering to these strategies, brands can effectively navigate the challenges of Google Ads during the competitive BFCM period, ensuring maximal return on investment and sustained growth.

Note: This summary excludes non-content sections such as advertisements, introductions, and casual conversations unrelated to the core topic.